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Keene residents face $800 monthly water bill increase as railroad seeks a rate hike or service exit

Union Pacific subsidiary asks California regulators for permission to dramatically raise rates or abandon water service to the small community
Keene residents face $800 monthly water bill increase as railroad seeks a rate hike or service exit
Keene water bills could skyrocket under railroad proposal
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TEHACHAPI, Calif. (KERO) — Keene residents are facing the possibility of water bills skyrocketing as the Union Pacific Railroad subsidiary that operates their water system seeks dramatic rate increases or permission to abandon service entirely.

The Keene water system, originally built to supply steam locomotives, has been maintained under a legacy agreement since trains were phased out. Union Pacific has been trucking in water to supply the small community, but now says the operation is financially unsustainable.

"My bill would go from, let's say, $300 or so, to about $1,250 to $1,400 a month for water," said Debra McTaggart, who has lived in Keene for over eight years.

McTaggart says her current water bill is already high compared to larger cities like Bakersfield, despite their more extensive infrastructure.

"It's alarming that they were able to basically push this and try to say, We want an answer now, and we want to be able just to pull out and we and if we can't pull out, we want to raise the rates, you know, basically to outrageous amounts that no one could afford," McTaggart said.

We reached out to Kern County Supervisor for District 2, Chris Parlier, who said in a statement that he's aware of the issue and will stay engaged with it, but it falls beyond the county's jurisdiction. Parlier added that he, like residents, is hopeful that a long-term solution can be worked out.

The water system has petitioned the California Public Utilities Commission for permission to either dramatically increase rates or abandon the system altogether.

In an email statement, a Union Pacific spokesperson said: "We understand the importance of water to our customers, and we have expended considerable resources to find a cost-effective solution to water in the region. Those efforts have proven unsuccessful. As a private company, we have a responsibility to our shareholders to cover our expenses either through a significant rate hike or to stop hauling water."

Daniel Romero, who has lived in Keene on and off for about 50 years, questions the railroad's financial claims.

"It's very ridiculous. They're saying that they don't — They're not making the bottom line, that they're broke, and we're trying to understand that because they're a $40 billion a year corporation," Romero said.

The California Public Utilities Commission will hold a community meeting with Keene residents on March 3 to gather input on the proposed rate increase and potential dissolution of water service responsibilities. Residents say they hope to find common ground and a path forward.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.


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