Southwest Water Co. said the enforcement office of the California water board may recommend more than $15 million in fines against one of the Los Angeles-based utility provider’s subsidiaries.

Bloomberg News reported that the subsidiary, ECO Resources Inc., is subject to “possible administrative action'” against its status as a contract operator of wastewater treatment plants in California, Southwest Water said in a filing with the U.S. Securities and Exchange Commission.

The board notified Southwest Water in a letter dated Jan. 28, the company said, and added that it can not predict the financial effect of the fine or other actions.

Shares in Southwest Water closed down 2.6 percent to $11.07 in trading Monday.