The Top Five Reasons to KeepCalifornia’s Water in Public Hands
WATER
The research shows five main ways that private control of water is a bad deal for California.
1. High Water Rates.
On average, Californiahouseholds pay 20 percent more for water from privateutilities. That’s an extra $85 a year (see figure 1).
1
Felton (water).
Public acquisition of Felton’s watersystem from California American Water in 2008 willsave the typical household $870 a year on their water bills.
2
Chualar (water).
After California American Watertook over the water system of this farm-workercommunity in Monterey County, some monthly water bills jumped from $21 to as much as $600.
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2. Expensive Financing of Water and Sewer Projects.
Private financing is far moreexpensive than public financing (see figure 2).
From 2000 to 2007, even the best-rated corporate bonds were 23 percent more expensive than typicalmunicipal bonds issued in the state and more thanthree times as expensive as loans from California’sState Revolving Fund programs.
4
3. Clean Water Act Violations.
Comparedto their public counterparts, private operators of majorwastewater treatment plants in California were 60 percent more likely to have significant alleged violationsof their wastewater permits (see figure 3).
5
Richmond (sewer).
In 2006 Richmond and West County agreed to spend $25 million on sewerimprovements to settle a lawsuit alleging that it and Veolia, the private operator, spilled 17 million gallonsof wastewater.
6
Burlingame (sewer).
In 2008 Burlingame agreedto make multimillion-dollar improvements to itssewer system to settle a lawsuit alleging that it and Veolia spilled millions of gallons of wastewater.
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4. High Operating Costs.
Public control is abetter deal for the ratepayer and the taxpayer.
Fairfield and Suisun (sewer).
In 2008
theFairfield-Suisun Sewer District ended its wastewater
Figure 1: Annual Water Bill of the Typical Household inCalifornia Using 11,000 Gallons a Month
0$100$200$300$400$500$600
T
he waters of California belong to the people of California. The resource mustremain public to keep it safe and affordable. When water and sewer systems fallinto private hands, costs grow and consumers end up paying too much for poor-quality water. It can lead to sewage spills and service problems. Because of thesefailures, taxpayer money should neither incentivize nor subsidize private ownership,management or operation of water and sewer systems.
“All water within the State is the property of the people of the State…”–
California Water Code, Section 102
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