Cal Am's Massive Disinformation Campaign
Cal Am is flooding the Peninsula with mailers and TV ads in an effort to defeat Measure J. They are desperate and determined to confuse voters. You can help set the record straight.
Public Water Now is countering Cal Am’s misleading claims with PWN Facts vs. Cal Am Fiction. Please pass this on to your neighbors and friends.
Cal Am’s claim that they are worth $1.04 billion is wildly inflated. Public utilities are typically valued on their rate base. Cal Am’s rate base value is $125 million. Two times the rate base would be a generous price range for a corporate utility. If Cal Am refuses to sell, a court will determine a fair price in an eminent domain proceeding.
Inflating their value is a scare tactic used to make voters think that a buyout is just too expensive and would raise water costs. This massive disinformation campaign is the old “lie repeated a thousand times” strategy. Cal Am is spending millions to defeat Measure J. With your help, we can win!
Past acquisitions show a pattern of Big Water inflating their worth in public buyouts.
In the 2008 Felton buyout, Cal Am initially said they were worth $46 million, but they sold for $13 million. In Ojai's recent buyout, Golden State asked for $120 million and got $34 million. In Missoula, Montana, private owner Carlyle initially asked for $200 million, but the court ordered the sale at $88 million. MR Valuations was the appraiser in the Missoula case and they are also the firm who has valued Cal Am at the inflated $1.04 billion.
Cal Am never mentions the profit savings that are available to cover the cost of the buyout. We can pay for Cal Am without raising water bills because we would buy Cal Am with its own profits. Bond payments could be covered by the $19 million annually that Cal Am now takes in profit and pays in corporate taxes.
The Measure J feasibility study will determine what Cal Am is really worth and if we can afford to buy it. Let’s get the facts and find out.