California American Water Files Motion to Dismiss Monterey Peninsula Water Management District's Condemnation Suit

Today, California American Water filed a motion asking the Monterey County Superior Court to dismiss the Monterey Peninsula Water Management District's (District) lawsuit seeking a government takeover of the company's Monterey Peninsula water system through eminent domain. The motion argues that the District’s lawsuit fails to meet fundamental legal requirements necessary to proceed with such a significant action and should be dismissed. The motion is scheduled for a hearing by the court on April 26, 2024.

"We remain committed to serving the Monterey Peninsula community with safe, reliable water service, and we will continue to do so," said Evan Jacobs, Senior Director of External Affairs for California American Water. "The condemnation suit is going to waste millions of dollars in legal fees negatively impacting our residents, and we believe the District has neither the legal standing nor technical expertise to provide retail water service on the Monterey Peninsula."

California American Water’s motion asserts that the District lacks legal authorization from both the California Legislature and the Monterey County Local Agency Formation Commission (LAFCO) to become the retail water service provider on the Monterey Peninsula. In addition, California American Water asserts that the District’s lawsuit improperly seeks to take property outside the boundaries of the District’s territory.

"The residents who must pay the taxes and fees to support the District deserve sustainable water supplies, not more litigation and an unnecessary waste of District resources," added Jacobs.

California American Water and its predecessor companies have operated the Monterey Peninsula’s water system for more than 60 years. The system currently serves roughly 100,000 people with a network of over 680 miles of pipeline and over 100 storage tanks. It is one of the most complex water systems in California.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About California American Water

California American Water, a subsidiary of American Water, provides high-quality and reliable water and wastewater services to approximately 700,000 people.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, among other things, the outcome, timing and results of the District’s condemnation efforts with respect to California American Water’s Monterey peninsula water system. These statements are based on the current expectations of management of California American Water. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements, including with respect to (1) the outcome of the eminent domain litigation filed by the District, and the timing of its resolution; (2) the continued success by California American Water of challenges to the District’s authority to own and operate the Monterey peninsula water system; (3) the result of California American Water’s efforts to dismiss the District’s eminent domain litigation; (4) unexpected costs, liabilities or delays that may be incurred by California American Water, and the amount of litigation costs to be borne by residents of the District, in connection with the defense of this eminent domain litigation and other associated proceedings and actions; (5) other regulatory, legislative, local, municipal or other actions adversely affecting California American Water specifically or the water and wastewater industries generally, including with respect to the ongoing Monterey Peninsula Water Supply Project; and (6) other economic, business and other factors.

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