Privatization of Water Services in the United States : An Assessment of Issues and Experience

• ISBN13: 9780309074445
• ISBN10: 0309074444
• Format: Hardcover
• Copyright: 2002-10-01
• Publisher: Natl Academy Pr

Summary

In the quest to reduce costs and improve the efficiency of water and wastewater services, many communities in the United States are exploring the potential advantages of privatization of those services. Unlike other utility services, local governments have generally assumed responsibility for providing water services. Privatization of such services can include the outright sale of system assets, or various forms of public-private partnerships-from the simple provision of supplies and services, to private design construction and operation of treatment plants and distribution systems. Many factors are contributing to the growing interest in the privatization of water services. Higher operating costs, more stringent federal water quality and waste effluent standards, greater customer demands for quality and reliability, and an aging water delivery and wastewater collection and treatment infrastructure are all challenging municipalities that may be short of funds or technical capabilities. For municipalities with limited capacities to meet these challenges, privatization can be a viable alternative. Privatization of Water Servicesevaluates the fiscal and policy implications of privatization, scenarios in which privatization works best, and the efficiencies that may be gained by contracting with private water utilities.

Table of Contents

Executive Summary	1	(9)
Key Issues in Water Services Privatization	10	(19)
Forms of Water Service Privatization	11	(4)
Trends in and Types of Privatization	15	(8)
Concerns About Privatization	23	(5)
Concluding Observations	28	(1)
History of U.S. Water and Wastewater Systems	29	(12)
Public Water Systems in the United States	30	(5)
Publicly Owned Wastewater Treatment Works	35	(2)
Private Water Systems	37	(1)
Water Utility Privatization Around the World	38	(3)
Forces of Change in the Water Service Industry	41	(15)
What Do Customers Expect?	42	(2)
Public Officials and Privatization	44	(1)
Changing Leadership: Managers, Engineers, and Water Utility Professionals	45	(1)
Change and Growth in the Private Sector	46	(1)
Regulations and Standards That Affect Service	47	(1)
Technology	48	(1)
Risk Sharing	49	(1)
Regionalization and the Small Utility	50	(1)
Capital Investment	51	(2)
Summary	53	(3)
Models of Water Service Provision	56	(25)
Four Strategies	58	(19)
Assuring Successful Contracts	77	(1)
Risk Management	78	(1)
Contract Oversight and Evaluation	78	(1)
Summary	79	(2)
Structural, Pricing, and Regulatory Issues	81	(19)
Infrastructure and Capital Intensity	81	(4)
Rising Costs and Their Effects on U.S. Water Services	85	(3)
Regionalization and Consolidation	88	(3)
Regulation	91	(9)
Broader Implications of Water Services Privatization	100	(10)
Privatization and Community Values	101	(3)
Implications for Environmental and Water Supply Protection	104	(2)
Privatization and Regional Economic Growth	106	(3)
Summary	109	(1)
Conclusions	110	(4)
REFERENCES	114	(25)
APPENDIXES
A Privatization of Water Services in England and Wales	121	(7)
B Overview of Safe Drinking Water Act (SDWA)	128	(3)
C Seattle Public Utilities Treatment Plant Design-Build-Operate Project, Risk-Sharing Matrix	131	(4)
D Biographical Information	135	(4)
Index	139