RECENT CALIFORNIA DECISIONS

October 2004

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Second District Permits Castaic Lake Water Agency to Enter the Retail Water Market in the Santa Clarita Valley
Klajic v. Castaic Lake Water Agency

The Castaic Lake Water Agency (CLWA) may sell water to retail customers in certain areas of the Santa Clarita Valley without first entering into a contract with a local retail water company, according to the Court of Appeal for the Second District’s July 29, 2004 decision. Due to an amendment to the agency’s enabling act passed by the Legislature in 2001, CLWA is exempt from statutory prohibitions that would prevent a wholesale water distributor from selling to retail consumers without first contracting with a local water company.