If you’ve followed the recent history of Illinois American Water Co. on this blog, you would know that recent rate case filings at the ICC (Illinois Commerce Commission) have been met with a whole lot of public opposition. The company has been attempting to increase its rates in virtually all of its subsidiary service areas, [...]
I came across an excellent paper on utility economics the other day during some internet research. The paper stands out for its focus on regulation of natural monopoly businesses, which specifically include water and sewer utilities. Natural monopolies are defined as an industry where a single firm can produce output to supply the entire market [...]
One of the interesting debates in the water industry these days is how, when, why, and how much private equity can be brought to bear to address our growing water investment needs. As readers of our blog would note, US water systems are faced with daunting shortfalls in financing for developing new water supplies, and [...]
Public Works magazine is one of many, perhaps the latest, reporting on the huge gap in funding between our water and sewer infrastructure needs and current annual spending. The problem isn’t new. Water and sewer infrastructure have been aging unabated for 50 years or more and its no surprise to anyone that water pipes, pumps, [...]
The USEPA’s Community Water System Survey released in 2009 provides more evidence that private utilities do not provide services at a net benefit to customers. Although the survey shows that the actual cost is lower at private utilities than for public ones, those savings evaporate once private owner profits are considered. If you factor in [...]