The cost of buying Cal Am

“The cost of buying Cal Am”, Carmel Pine Cone – Oct. 20, 2023

The Monterey Peninsula Water Management District’s continued clumsy attempt to nationalize Cal Am’s property will provide entertainment for years to come. This is great sport for those who want to dream about a socialist workers’ paradise on the Peninsula and chant about an election they won back in 2018. I don’t live in the district and it won’t cost me anything to watch, so have at it. Nevertheless, I would like to inform Seaside mayor and water board member Ian Oglesby who said, “This is about the business model of Cal Am. They are in the business of making money, and the ratepayers should be able to say, ‘We don’t want to pay that extra money. Period.’”

“Das Kapital” is an interesting read, but he should understand that it is philosophy and theory. This is America, a nation of laws, and the government cannot seize property without compensating the owner. That compensation will include the present value of all future profits. Therefore, instead of the protections afforded by state regulators who keep water prices as low as possible, ratepayers in the district will pay for the cost of water production as well as a high-interest mortgage on the acquisition. Mayor Oglesby is advocating for the sale of government bonds, not to finance infrastructure construction that benefits district citizens, but instead to compensate Cal Am shareholders.

Jim Andrews, Marina