TFTT Report
New Utility Valuation Reform Case Study out of Montebello, California
A new case study out of Montebello, California provides a snapshot of the benefits that come when a municipality taps into the expertise and economies of scale of a regulated, private water company.
The City of Montebello faced significant challenges in the operation of its water system that served just 1,600 connections, struggling to fund system maintenance and necessary infrastructure upgrades without major rate increases.
In 2020, Montebello sold its water system to San Gabriel Valley Water Company, which already owned and operated a larger, neighboring system. By consolidating with San Gabriel Valley Water Company, which serves more than 500,000 customers statewide, the City was relieved of financing out of its General Fund the much needed and long-overdue improvements to its small water system.
Check out the full Truth from the Tap Montebello case study that is included in the TFTT Utility Valuation Reform microsite.