04-03-08 by simpson
Residents of the tiny Central Coast community of Casmalia are asking if Oil Giant Chevron, which supplies water to the community through a subsidiary, wants to turn the hamlet into a ghost town.
You’ll recall that the Casmite, the Chevron-owned company supplying water to the community’s 200 residents asked the Public Utilities Commission for permission to raise rates 138%
PUC staffer S. Robert Weissman has recommended an 89% increase that would mean an average $217 monthly water bill for the 52 residential customers in the California Central Coast community just north of Vandenberg Air Force Base.
Here’s the reaction in a letter from Bill Ostini, president of the Casmalia Community Services District to the PUC:
"With your 89% recommended rate increase, the water rates in this town will have risen 1000% since 2002…
"The Casmite Corporation has not allowed new hookups to their water system in many years. Everyone keeps saying this poor community should take care of their own water problem. Tell us how and we will. Why isn’t anyone telling Casmite and their parent company — Chevron — to find some new customers? Some of most disadvantaged people in California –the people of Casmalia — will be paying the highest water rates in the State! If this is not true, tell us who is paying more.
"If this increase is granted, it will signal the beginning of the end for us. Each year there will be a new increase, until there is no one left to pay….Casmalia will become a ghost town….but then, maybe that’s what Chevron really wants."
Here’s what needs to happen: Before leaving, Chevron should pay whatever is necessary to get the water system in shape and do whatever else is needed so it can be merged with a viable utility, one that’s actually in the water business. Chevron should also set up a trust fund to help subsidize the system for several years. Merged with a larger water company, Casmalia’s rates could be spread over a reasonable customer base.
It’s not like there is no precedent. New Cuyama faced a similar situation when oil company Atlantic Richfield wanted to stop providing water service in 1977. The solution was to create the Cuyama Community Services District and turn over the water system — and $1 million to maintain it — to the community.
Chevron needs to harness some of the vaunted “human energy” touted in its multi-million dollar ad campaigns and solve this.