L.A. County Backs State Bills to Boost Oversight of Mutual Water Companies

Las Flores Water Company Boundary Map (File Photo – lasfloreswaterco.com)

The Los Angeles County Board of Supervisors on Tuesday, April 14, unanimously approved a motion supporting two state legislative proposals aimed at increasing transparency, accountability, and consumer protections for private mutual water companies serving communities such as Altadena.

By News Desk

The motion, authored by Supervisor Kathryn Barger and co-authored by Supervisor Janice Hahn, directs the county to advocate for Senate Bill 1417 and Senate Bill 1291. The measures seek to address gaps in oversight and public access within mutual water companies—private, typically nonprofit corporations that provide essential drinking water services but are not governed by the same regulations as public agencies.

“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,” Barger said. She added that while mutual water companies are private entities, efforts to improve transparency and accountability are essential to ensuring residents can participate in decisions affecting them.

Hahn emphasized that customer-owned water companies must remain accountable to the communities they serve. “Our residents deserve greater transparency and inclusion in decisions about the water they pay for and depend on,” she said, pointing to reform efforts led in Sacramento.

Mutual water companies fall under state jurisdiction, with oversight from the State Water Resources Control Board on issues such as water quality, supply, and compliance. As a result, Los Angeles County’s role is limited to advocacy and support for legislative changes.

The issue has taken on added urgency in Altadena, where recovery from the Eaton Fire continues. Three local mutual water companies have faced significant operational and financial strain following the disaster, including infrastructure damage, revenue losses, and the need for major capital improvements. These challenges have led to rate increases and recovery-related charges that have affected residents, many of whom remain displaced or are rebuilding.

Unlike public utilities, mutual water companies operate with limited governance requirements beyond water quality standards, which can restrict customer participation, particularly for residents navigating post-disaster recovery.

The proposed legislation aims to strengthen transparency by expanding open meeting requirements, improving access to company records, standardizing notice procedures for rate changes, and enhancing consumer protections. Suppo