17837_Authority_Oct

municipalauthorities.org | 51 political momentum behind calls to re-nationalize water services, or at the very least, impose much stricter regulatory controls. Conclusion: A Need for Re-evaluation The experiences of England and Ireland with privatized water utilities underscore the risks inherent in prioritizing profit over public service in essential industries. As these countries grapple with the consequences of years of underinvestment and environmental neglect, there is a clear need for a re-evaluation of the ownership and regulatory frameworks governing water services. Whether through re-nationalization or more robust regulation, it is crucial that the primary focus of water utilities returns to ensuring safe, reliable, and environmentally sustainable water services for all citizens. So far, it appears that public ownership and operation may well form a more solid base for lower cost service. It is fair to ask whether rates for public systems in Pennsylvania would be as low if they were required to bring all infrastructure up to standard. Systems under consent decrees surely increase rates materially to meet mandated infrastructure improvements. When comparing rates in private systems to their IOU brethren, one must be fair minded and compare apples to apples. The lessons learned from these cases from across the Atlantic serve as a cautionary tale for Pennsylvania’s perhaps unjustifiably aggressive privatization initiatives. Should the PUC, charged with protecting the interests of retail customers against the natural impulses of monopoly corporations, be advocating a “solution” that has no guarantee of improved outcome and such a poor track record abroad? Only by ignoring the serious problems experienced after privatization in England and Ireland can one be so bold as to demand a particular approach to such a fundamental matter as ownership. Upon what evidence can regulators in Pennsylvania insist privatization is a favored idea? Water is a public good, and its management should reflect the needs and priorities of the public, not the interests of investors. It is heartening to see recent efforts by the PUC to add analysis to potential public acquisitions of public systems. We should encourage closer scrutiny given that the costs to customers of failure are so high. Privatization does not deserve a boost from the Commonwealth or the Regulator. It deserves skeptical but fair minded review. S Perils article continued from page 22. Interesting that the cure for bad management under private ownership is public ownership. Has Pennsylvania taken note?