Liz, Thank you for the coverage. I am a security analyst who follows American Water Works Company (AWK). I believe that you are correct that selling out leads to increases in water bills for community residents, but clearly in most cases, as I believe that you point out, the selling communities have found it difficult to comply with EPA regulations on water quality. Upgrades cost money and municipalities often face the ire of their constituents when rate increases are proposed. It seems that people are more willing to accept rate increases that come from private companies. I think that you should also note that the acquirors still have to get proposed capital budgets and rate increases approved by state public utility commissions, so there is oversight. Some municipalities have also found the middle ground by contracting out the management of the local water companies to private operators, rather than selling outright.
Liz, Thank you for the coverage. I am a security analyst who follows American Water Works Company (AWK). I believe that you are correct that selling out leads to increases in water bills for community residents, but clearly in most cases, as I believe that you point out, the selling communities have found it difficult to comply with EPA regulations on water quality. Upgrades cost money and municipalities often face the ire of their constituents when rate increases are proposed. It seems that people are more willing to accept rate increases that come from private companies. I think that you should also note that the acquirors still have to get proposed capital budgets and rate increases approved by state public utility commissions, so there is oversight. Some municipalities have also found the middle ground by contracting out the management of the local water companies to private operators, rather than selling outright.