CPUC-Approved Water Company Acquisition Looked to as Model for Disadvantaged Communities
Construction on a new water treatment facility is underway in the town of Robbins after CPUC approved the acquisition.
Robbins is a small rural town located in Sutter County east of the Sacramento River that has been struggling with water quality issues. The community’s 300 residents have been reliant on drinking bottled water due to high toxicity in the water from unsafe levels of arsenic. But the community can breathe a sigh of relief knowing that construction of a new well and water treatment facility is in its final stages and near completion.
Resident Joan Stephens adores the place she calls home and has peace of mind knowing that clean water is on the way.She has listened to her community voice concerns about discolored water coming out of home faucets and causing skin allergies.
“Everybody’s getting very excited. There are people that cannot bathe in the water. Some people don't like washing their dishes in it and others won't wash off their fruits and vegetables in the water either."
- Joan Stephens, Robbins Resident
Bottled water is delivered by Golden State Water Company to Joan Stephen’s home in Robbins.
In 2022, the California Public Utilities Commission (CPUC) approved Golden State Water Company’s request to acquire Robbins Water System through Resolution W-5237, a monumental first step in bringing the community relief. Infrastructure upgrades will support a new well, treatment center, a backup power generator in the event of an emergency, and the removal of the existing water tower. The project is slated to be completed in 2027.
“It gives you reason to hope again. We've gone back to feeling like, gosh, if our kids wanted to live out here, it would be terrific.”
- Joan Stephens, Robbins Resident
Golden State Water Company received a grant from the Water Board's SAFER Program to pay for a new water utility in Robbins after CPUC approved the acquisition.
To support upgrades, Golden State Water Company received an $8 million grant from the California State Water Resources Control Board’s SAFER program intended to address communities facing water disparities.
Addressing water inequities in disadvantaged communities
Poor water quality disproportionally impacts low-income communities and many of the water systems that are failing serve small populations in rural areas. In agricultural regions, groundwater can become degraded from farming practices and infrastructure tends to be older in these regions of the state. This can lead to water contamination, failing wells, and sanitation problems.
To determine regions that can benefit from acquisitions, the CPUC uses CalEnviroScreen, a tool that identifies regions dealing with pollution such as poor water quality and provides data identifying which areas are considered disadvantaged where residents often face more environmental challenges.
CalEnviroScreen identifies disadvantage communities with poor water quality.
Robbins is a model of what may be possible for other struggling communities and is in line with the CPUC’s Environmental and Social Justice Action Plan (ESJ), which prioritizes equity and access in regulatory work. The Robbins acquisition met goals laid out in the ESJ plan, including:
➡️Improving access to clean water in disadvantaged communities,
➡️and integrating equity and access in the CPUC’s regulatory work.
“Our team looks to the ESJ plan as a guidepost on how to provide safe, clean, and affordable water utility services through a lens of equity and justice. With fewer resources, disadvantaged communities often need our help the most. It’s great to see the success of the Robbins acquisition, giving other communities in similar situations hope for what’s possible,” said the CPUC’s Water Division Director Terence Shia.
The CPUC’s Water Division regulates 84 investor-owned utilities, serving about 16 percent of Californians. Since 2007, the CPUC approved 79 water utility acquisitions, 19 of which served disadvantaged communities. And for a broader view, the California Water Resources Control Board, which sets water quality standards for all water utilities in the state, shows that 79 percent of failing water systems serve disadvantaged communities.
The CPUC's ESJ Action Plan is a guidepost for its regulatory work.
Addressing affordability
The CPUC’s Water Division is also looking to acquisitions as a way to address affordability in disadvantaged communities in its affordability proceedings. Ratepayers of small water utilities in disadvantaged communities often pay more compared to ratepayers in stable communities, which tend to have utility providers with economies of scale. With larger utilities, costs for repairs and services are spread across a larger customer base.
"Acquisition has definitely been the cure for us. We hope by the middle of next year, Golden State Water Company will be throwing on the switch, and the water utility will be functioning."
- Joan Stephens, Robbins Resident
Construction on the new water treatment plant in Robbins is schedules for completion in summer 2027.