Another Altadena Water Company Calls Shareholder Meeting to Address Eaton Fire Financial Woes

Late last month the tiny Los Flores Water Company in Altadena told its customers it was operating with 75% less revenue because of the Eaton Fire and needed to make up for the shortfall. Now, Rubio Cañon Land and Water Association has announced it faces a $1.95 million budget shortfall, and on Tuesday, its shareholders will be asked to decide how to close the gap.

The special board meeting, scheduled for February 3 from 5 to 7 p.m. at the Altadena Community Center, comes as all three of Altadena’s private water companies confront post-fire financial crises. Rubio Cañon is the largest, serving about 9,600 people in the unincorporated area, and unlike its smaller neighbors, its board has explicitly rejected consolidation with other utilities as a recovery strategy.

The meeting will present shareholders with options that may include a proposed 11% rate hike and a monthly fire recovery charge of $10 to $30, General Manager Lisa Yamashita-Lopez wrote in an email to the Los Angeles Times.

The association’s operations are funded entirely through water sales, and the loss of customers has cratered revenue while fixed operating and maintenance costs remain unchanged.

According to association documents, insurance has covered most infrastructure damage. The company valued damaged infrastructure at $2,339,275 and has received $2,227,585 in insurance advancements. But the insurance does not cover the revenue shortfall, and “build back better” upgrades—including fire-resistant aluminum reservoir roofing estimated at $457,725—must come from other sources.

The February 3 meeting is expected to include discussion of two approaches to closing the deficit: using financial reserves or pursuing an alternative that does not tap those reserves, according to the association’s meeting notice. Shareholder input will guide decisions on project prioritization and funding strategy.

Rubio Cañon’s financial situation parallels but differs from those of Altadena’s other private water utilities.

Las Flores Water Company, the smallest of the three, lost 75% of its customers’ homes and has proposed a fire recovery fee of $50 per month for five years—prompting outcry from some residents.

Lincoln Avenue Water Company lost 58% of its customers and plans a roughly $15 monthly increase in March but says it is “not on the verge of bankruptcy.”

Rubio Cañon reported that it submitted all eligible FEMA reimbursement requests and applied for a Small Business Administration loan, which was denied because the SBA determined there was no qualifying economic impact, according to association documents.

A $25,000 local business grant application remains pending.

Litigation against Southern California Edison to recover damages and lost revenue is ongoing.

The Rubio Cañon board’s stated position is that consolidation—merging with other water companies—would not serve shareholders’ interests. Association documents warn that consolidation could trigger a 7- to 12-year state process and significant shareholder costs, noting that Altadena is not classified as a disadvantaged community eligible for the full menu of state resources.

The increases are intended to keep Rubio Cañon “solvent with reserves readily available to fund necessary improvements,” Yamashita-Lopez told the Los Angeles Times.

The meeting will be held at the Altadena Community Center, 730 E. Altadena Dr. A formal agenda will be distributed separately. For more information, shareholders can contact the association at (626) 797-0509.