ARROYO CENTER, Monterey County — October 2026. The California Public Utilities Commission published a September 24, 2026 notice of noncompliance to Arroyo Center Water Company, the small utility serving the Arroyo Seco area near Greenfield. The notice concerns an incomplete annual financial report for 2025, not a finding that residents’ drinking water failed a health standard.
What did the state auditors find?
According to the commission’s Utility Audits Branch, Arroyo Center Water Company submitted its 2025 annual report on August 17, but significant required financial schedules were incomplete. The agency said the submitted balance sheet showed $311,345 in total assets and other debits compared with negative $5,296 in liabilities and other credits. Those figures did not balance. Auditors listed possibly omitted balances in cash, accounts receivable and accounts payable among the concerns. This numerical discrepancy refers to information in the filed report; it does not establish how much cash or debt the utility actually had.
What happened before the notice?
CPUC said utilities had been instructed to submit 2025 annual reports by April 30, 2026. Its auditors notified the company in August, and after preliminary observations the company requested an extension to September 7 to submit a revised report. As of September 24, according to the notice, the commission did not have a revised, accurate report and could not complete its financial review.
The letter states the commission may consider further regulatory action, including citations or fines if noncompliance continues. It does not say that a fine had already been imposed. Because the letter has a September date, this article does not claim to establish whether the company submitted corrections after that date.
Does this mean the water is unsafe?
No such conclusion follows from this notice. The CPUC audit deals with financial reporting. Drinking-water sampling, contaminant limits and notices are governed by a separate regulatory framework. The company has also provided a 2025 Consumer Confidence Report through the regulator’s public index. That document must be evaluated on its own terms.
What can local customers ask?
Residents may ask the utility whether a corrected 2025 financial report has been submitted, how the balance-sheet discrepancy was resolved, and whether any subsequent CPUC order has been issued. The CPUC letter lists UtilityAudits@cpuc.ca.gov for inquiries. Questions about current drinking-water safety should be directed to the water operator or California’s drinking-water regulator, rather than inferred from a financial audit.
Primary source: CPUC Utility Audits Branch, September 24, 2026 Notice of Noncompliance (PDF); 2026 CPUC audit report index.
Editorial transparency: California58 has not received a current response from the company and is not alleging financial fraud, customer overbilling or unsafe drinking water. Later documented developments should update this article at the same URL.
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