Supervisors Barger and Hahn Secure County Support for State Legislation Advancing Transparency and Oversight of Private Mutual Water Companies
The Los Angeles County Board of Supervisors today unanimously approved a motion authored by Supervisor Kathryn Barger and co-authored by Supervisor Janice Hahn to support two new state legislative measures aimed at strengthening transparency, governance, and consumer protections for private mutual water companies serving communities like Altadena.
“Eaton Fire survivors deserve a meaningful seat at the table as critical decisions are made about their water systems because these decisions directly impact their recovery and future,” said Supervisor Kathryn Barger. “While mutual water companies are private entities, I’m committed to supporting every effort that increases transparency, strengthens accountability, and ensures residents can fully participate in decisions that affect them. I thank Senator Sasha Pérez and Senator Lena Gonzalez for their leadership in advancing these important legislative solutions.”
Notably, private mutual water companies, which are typically nonprofit entities owned by their customers, fall under the regulatory authority of the State of California, with oversight by the State Water Resources Control Board for water quality, supply, and system compliance. As a result, Los Angeles County’s role is focused on advocacy and supporting legislative efforts that improve accountability and transparency.
“These water companies are owned by their customers, and they should be accountable to them,” said Supervisor Janice Hahn. “Our residents deserve greater transparency and inclusion in decisions about the water they pay for and depend on. The reforms being championed in Sacramento by Senator Gonzalez and Senator Perez are about transparency and protecting consumers.”
The motion directs the County to support Senate Bill 1417 (Pérez) and Senate Bill 1291 (Gonzalez), both of which seek to address gaps in oversight and public access within mutual water companies—private corporations that provide essential drinking water services but are not subject to the same governance and financial regulations as public water agencies.
In Altadena, where recovery from the Eaton Fire remains ongoing, water access and infrastructure stability are core to rebuilding efforts. Three mutual water companies serving the area have faced severe operational and financial challenges following the disaster, including infrastructure damage, revenue losses, and the need for significant capital improvements. These pressures have resulted in rate increases and recovery-related charges that directly impact residents—many of whom are still displaced or rebuilding.
Unlike public agencies, mutual water companies operate with limited regulatory oversight beyond water quality standards, and gaps in governance practices can restrict customer participation, especially for fire survivors navigating displacement and recovery.
The supported legislation would improve transparency by enhancing open meeting requirements, expanding access to company records, standardizing notice procedures for rate changes, and strengthening consumer protections. These reforms are intended to ensure that residents have clearer insight into decision-making processes and greater ability to engage in them.
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