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Privatization of Water Services in the United States An Assessment of Issues and Experience (2002) / Chapter Skim
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7. Conclusions
Pages 110-113

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From page 110...
... Outright sale of public assets has been infrequent in the United States except for "regionalization" of small utilities. Nonetheless, investor-owned companies have historically played and continue to play an important role in providing water services in the United States.
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From page 111...
... The challenge is to find ways of standardizing procedures to reduce costs while not infringing on the freedom of municipalities or contractors to propose innovative approaches. Communities often express concerns when considering privatization options, which include possible impacts on public goods such as environmental protection, water quality protection, transparency of decision processes, and openness to public input.
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From page 112...
... But rates can move in either direction, depending on the financial condition of the utility, the cost savings realized, and near-term improvements and investments called for under the contract. Historically, public utility water rates have been only loosely tied to costs, while public officials have sometimes been unwilling to charge appropriate prices because of a tradition of underpricing.
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From page 113...
... Water markets are subject to some degree of state supervision to protect other water users and various social and environmental values that can be impacted by changes in water use. Acquisition of water supplies through water markets will require collaboration of utility managers with state regulatory agencies.
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Key Terms

  • water utility
  • water markets
  • water services
  • utility managers
  • public utility

  • private alternatives
  • water rates
  • publicly owned
  • quality protection
  • frequently lack

  • historically played
  • water quality
  • unfair financial
  • significant willingness
  • considering privatization

  • state supervision
  • civil engineering
  • investments called
  • privately owned
  • require collaboration

  • outright sale
  • water utilities
  • time perspective
  • especially relating
  • economically inefficient

  • owned utilities
  • environmental values
  • public assets
  • customers appear
  • assets privately


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