Co-Sponsorship Memo Details

Privatization is often discussed as an option for public water systems owned by distressed municipalities. However, the impact of privatization can go far beyond the distressed municipality. A receiver of a distressed municipality and the municipal officials of such a municipality often make decisions on water authorities that serve residents of other municipalities.
 
For example, the Chester Water Authority serves 200,000 people across 37 municipalities. The sale of this water system would impact residents of the City of Chester, but also residents of several other municipalities. To ensure that all ratepayers are protected during sales of public water systems, I am proposing legislation to require that 75% of the municipalities with a service agreement with a utility owned by a distressed municipality approve by resolution the sale or other conveyance of the distressed municipality’s utility.
 
The typical household pays 59% more for water services from a privately held, for-profit utility rather than a publicly held utility. While there are certainly reasons to support and oppose privatization in most cases, residents should have a voice through their own elected leaders before their utilities are privatized and potentially become less affordable. Please join me in giving more impacted residents representation in the decision to privatize water systems.