It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
It may be an exaggeration, but not by much. Since 2007, the Metropolitan Water District of Southern California has increased its water rates from $574 an acre-foot to $781 an acre-foot - a 36% increase. (An acre-foot is the amount of water needed to flood a plain of one acre to a depth of one foot - or about 326,000 gallons.)
More increases are on the way. The MWD has approved an increase to $811 an acre-foot by January 2010 and another increase to $985 by 2011. That would mean a 71% increase
reply to post by RedGolem
Seeing commodities go up like that tells me there must be a reason behind it. When I see food go up in price I have related that to the price of oil, or the price of corn because corn has been used for a fuel. Seeing water going up the first thing that I think of is that its being manipulated.
California, by the way, is no longer a hostile state for the water utilities as far as rates are concerned. Those water increases I quoted up top ought to be evidence enough of that. In 2005, California made major changes to its policies, which I wont detail here. The end result: "California is great now," as one analyst - a 10-year veteran of water utilities - put it to me. "It is more likely now that water utilities will earn good returns on capital." The handful of publicly traded California water utilities may well be good investments now. Most trade below the acquisition multiples paid for the last 10 significant takeovers of water utilities. The low end of that range is about 2.5 times book value. The nearby chart shows you the discounts in these stocks based on this estimate of private market value, or PMV:
it does seem you are right on that, unfortunate. I wonder how far this will go until the people start screaming?
reply to post by jibeho
Public utilities should not be in the profit business, especially water. Cover your costs and your capital expenditures allowance and credit back the surplus at the end of the year.