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water rates charged to residents in Claremont," City Manager Tony Ramos said. "They like to brag to Wall Street, but like to lie to the ratepayers. I think what's really offensive to Claremont ratepayers is to claim the PUC (Public Utilities Commission) is forcing them to charge higher rates. They will say and do anything for money and I think it's shameful." Ramos was referencing water officials' response to criticism that the company is only allowed to charge what the PUC allows them. "Through its application, Golden State seeks a large increase for Region 3 in which the cities are located," said Kendall H. MacVey and Jason M. Ackerman, attorneys Barstow, Cypress and Stanton in a statement. "The rate increase, over the next three years, amounts to significant increases over current, already high, rates in the cities. The cities protest Golden State's application because it represents a request for rates that would be unjust and unreasonable." Additionally, the water company says a proposed settlement between Golden State, state Division of Ratepayer Advocates and Utility Reform Network, a utility customer adcocacy group, in connection with the general rate water hike agreement that was reached on June 21 would generate about $9 million in additional annual revenues starting in 2013 as compared to 2012 adopted revenues. The settlement, if approved by the PUC, is that Claremont's 11,000 customers and ratepayers in Region 3 are set to pay a 15.1 percent increase in rates in 2013, another 2 percent increase in 2014 and a 1.8 percent increase in 2015. "Golden State Water Co.'s rates reflect only the cost to provide the service and maintain the water system," water company spokesman Mitch Zak said. "In terms of profit, we do not earn any profit on operational expenses. And we are only allowed to recover a rate of return that is approved by the state Public Utilities Commission to help finance capital improvement projects." Apple Valley officials have protested the sharp increases in their town's rates. "More particularly, the town also protests the increase in general office expenses and allocations associated with the Region II and other Golden State service area proceedings as unjust and unreasonable to the extent they apply to Region III," MacVey said in a protest letter to the PUC on behalf of Apple Valley. Michael Deane, executive director of the National Association of Water Companies, said private water companies don't set their rates. "It is a public utility commission that establishes the rates," Deane Nike Cap All Black

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2011. According to recently released financials, more than $300,000 in profit were attributed to most recent rate increases approved on Jan. 1 by the state Public Utilities Commission for regions that include Claremont, Barstow, Wrightwood and Apple Valley. Officials in the region served by Golden State said they are upset over the increase in net profits. "Golden State Water Co. admitted to Wall Street their larger profits are due in part from higher Jordan Cap Gold

San Dimas based American States Water Co., the parent company of Golden State Water Co., recently announced it had a net income of $15.1million for the quarter ending June 30. The figure is 16 percent higher than the $12.7million realized in the same period of Nike Hat Snapback

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said. "It's very transparent." Deane said that because of the transparency issue, private water companies are better than municipalities in running a water company. "One thing private companies have over a lot of municipalities, whether perfect or not, is it's transparent for what it should cost, how to allocate the cost and rates for the customer," Deane said. "Unfortunately, on the municipality side, it's not as transparent. Local water utilities go to a public council. They're not held as accountable and as a governing body, the utility doesn't have the resources to provide safe service." Claremont officials will continue to look at purchasing the Claremont assets of Golden State. "The council has the highest reason to look at every option available for moving forward," Ramos said of looking at a possible purchase of the water company's assets in the city. Andy Kotch, a spokesman for the PUC, maintained his agency is not a rubber stamp for the water company. "We have to analyze to see what is fair Ny Hats White and just for the consumer and the business trying to maintain its operation," Kotch said. "That proposed decision is voted on by the commission." Kotch said an administrative law judge is scheduled to vote on the proposed rate increase in September and the the PUC will vote on it in October. "The decision may be adjusted by the administrative law judge as he sees fit," Kotch said, adding if more time is needed, the judge could delay his ruling. American States, through its subsidiaries, provides water service to one out of 36 Californians in 75 communities in 10 California counties in Northern and Southern California. The company also distributes electricity in the Big Bear Valley via Bear Valley Electric Services.

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1 million quarter net income for American States Water

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Ny Hats White

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