Big decisions are in store for small Altadena water companies and their customers after Eaton Fire

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The background: Last year’s fires not only destroyed homes and businesses, but also critical infrastructure, such as water delivery systems. Rebuilding that infrastructure is particularly challenging in unincorporated areas such as Altadena, which is primarily served by three tiny, private water companies — Las Flores (more on their situation here), Rubio Cañon and Lincoln Avenue water companies. Unlike public utilities, these private, not-for-profit companies have less access to state and federal funding resources to rebuild, so customers are likely going to have to foot much of the bill. Customers of these companies are actually co-owners, called shareholders. Each is governed by its own set of bylaws.

Complications: All of Altadena’s water agencies have sued Southern California Edison, accusing it of responsibility for the Eaton Fire, but the result and timeline of such lawsuits remain uncertain. In turn, Edison has sued the water companies (among others), claiming they didn’t provide enough water for firefighters during the fire.

Rubio Cañon Land and Water Association: Rubio Cañon Land and Water Association served about 9,600 people in Altadena but, after the Eaton Fire, about 30% of that customer base is now made up of empty lots. While insurance is covering much of the most critical infrastructure repairs, the company faces a $1.95 million revenue shortfall.

• Its proposal: To close the budget gap, the company is proposing an 11% rate hike, plus a “fire recovery charge” between $10 and $30 a month. 
• What about merging with other water companies? While Lincoln and Las Flores water companies have submitted paperwork to the state to study consolidation, Rubio Cañon has rejected being part of the effort. “Such consolidation could trigger a 7-12 year state process and significant shareholder costs, as Altadena is not classified as a disadvantaged community to qualify for the full menu of state resources,” the company wrote in its update ahead of this week’s meeting, calling such consolidation discussions “premature” and “unproductive.” 
• Upcoming board meeting: The board will hear from the public about the proposal at a meeting at 5 p.m. Tuesday at the Altadena Community Center. Attendees will have to prove they're a customer. More details here. 

Lincoln Avenue Water Company: Lincoln Avenue served more than 16,000 people in Altadena before the Eaton Fire. Now, about 58% of its customers and revenue are gone. Although the company says it has sufficient reserves and is not facing bankruptcy in the near term, it has decided to raise water bills by $15 a month for existing customers. To improve its long term resilience, the company is also considering merging with Las Flores water company, but that will take time.

• Upcoming board meetings: The board will discuss the rate hike at a special meeting at 5:30 p.m. Thursday at the Loma Alta Park Community Room. The meeting is open to shareholders only.