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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.

Comments (2)

2 Comments »

1. [...] This post was mentioned on Twitter by Jason Mumm. Jason Mumm said: While the recession ravages government-owned #water utilities, American Water flourishes http://bit.ly/ctInPv. 70% increases in rates work [...]

   Pingback by Tweets that mention American Water Rolling Through Recession | Stepwise -- Topsy.com — May 8, 2010 @ 3:40 pm

2. 

   It was reported this week that American Water’s net income for the TTM increased 40 percent. We will research more and report back.

   Comment by Jason — August 6, 2010 @ 9:40 pm

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