Jornal USA Today - Updated 4/21/2010 8:58 AM
Cities consider selling water, sewer systems for cash.
Tight budgets and falling revenues are prompting cities across the USA to consider selling municipal water and sewer systems to private companies. American Water, which operates in 35 states, is discussing deals with 75 municipalities and other entities — the most in at least four years, CEO Don Correll says.
Aqua America, which operates in 14 states, sent letters to thousands of cities in the past year and is talking with about 40 of them, CEO Nick DeBenedictis says. He expects to acquire about 20 systems this year. Selling or leasing water systems isn't always a good deal, says Wenonah Hauter of Food & Water Watch, a non-profit group. Some cities that do so are "mortgaging their future" by ceding control of a vital asset, she says, and rates often climb.
