WASHINGTON (dpa-AFX) - California American Water announced that it will
vigorously defend its right to continue to serve the customers and the
communities in its Monterey Peninsula Water System in response to the Monterey
Peninsula Water Management District's filing of an eminent domain action.

'California American Water has proudly and reliably served the customers on the
Monterey Peninsula for more than 60 years, and we will continue to do so. Our
system is not for sale,' said Evan Jacobs, Director of External Affairs for
California American Water.

The company noted that it will continue to contest the District's legal
authority to seize the water system, citing its lack of legal authority to
become the water service provider for the Monterey Peninsula.

The company believes the District does not have the legal authority nor the
expertise to reliably run such a complex water system, and this effort will cost
residents millions of dollars.



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