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In Honor of Chips

May 21, 2010

I’ve had the great privilege to work as a consultant in the water utility industry for the last 15 years, all of which from offices in the Denver area. It would have been impossible for me to not have known who Chips Barry was, and I didn’t need to know him closely or personally to know enough. I knew him because I do know, in some cases very well, many of the people who were close to him every day. I know the organization, Denver Water, that he led for some 20 years, and I know how that organization shines as an example in our water industry. I know the absolute respect that he earned from others, people I ended up working with at one point or another, or others less known who talked about the man with real admiration. I know the heartache that all of those people are feeling with Chips’ passing; I know because they’ve told me.

I know that our water industry has lost a great friend and leader in Chips Barry.  We will miss him.

One of the great causes that Chips was involved with was Water for People.   StepWise is also a supporter of this organization and we are glad that Water for People established a memorial donation site in honor of Chips Barry. We are not a big company here at StepWise, but from now until the end of May, StepWise will match every $25 donation made to Water for People through the Chips Barry Memorial Page at Water for People’s web site up to 100 such donations.

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American Water Windfall During Recession

May 6, 2010

For many months we have tracked the activities of private water companies in America through their requests for – most large – rate increases. We have an entire category on this blog dedicated to these activities listed under “privitization” on the right sidebar; give it a click to get some of the astounding history behind the big water rate increases.  After you’re done reading those blog entries, fast forward (or rewind) back here and read below as reported by MarketWatch:

American Water Reports First Quarter 2010 Results

Revenues increase by $37.9 million quarter-over-quarter to $588.1 million

Now, before the good folks at American finally read this blog and start getting angry, the point here is not that the company should not be making money.  In fact, they are entitled by law to have rates that allow them opportunity to earn reasonable profits.  The point here is that while every government-owned utility is trying to find ways to button down the hatches, save money, and cut rate increases as much as possible, American Water and other private companies are doing quite the opposite.  30, 40, 50, 70 percent increases are being proposed in different parts of the US by American Water’s subsidiary operating companies.

Government utilities take a black eye all the time.  They take those black eyes because in the end they are politically accountable for the things they do.  Private utilities are far less accountable.  Their large water rate increases have spoken volumes on their low degree of accountability to the public.  Their shareholders, however, are rolling.

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