Monday, December 29, 2014

Drinking water, for fun and profit


But if the bill passed by the New Jersey Senate is signed into law, and you just know His Fatness will sign a giveaway like this in a heartbeat, Hew Jersey residents may find there is no fun in paying bloated water bills to insure profits to the new corporate owners of their water system and no say on the sale either. And they will get the privilege of paying back the purchase price in their new bills.
A bill that would allow New Jersey municipalities to sell their public water utilities to private, for-profit corporations without putting the measure to voters is awaiting Gov. Chris Christie’s signature.

Until now, any municipality in New Jersey that sought to sell off its water system to a private bidder had to hold a public vote. But a bill passed with bipartisan support by the state’s Senate last week would allow municipalities with aging and deteriorating water systems to put their systems up for sale without holding a referendum.

While supporters of the bill say privatizing water systems could save municipalities money, it allows companies to factor the purchase price of the systems into the rates they charge customers, meaning taxpayers could ultimately be on the hook for the sale of their water systems.

Many New Jersey municipalities have turned to privatization as a way to get quick cash infusions for their deteriorating water systems. According to the Environmental Protection Agency, the state would need $41 billion over the next 20 years to repair its water, stormwater and wastewater systems.

“We’re an old, industrial state, and water infrastructure was built a long, long time ago,” said Lawrence Hajna, a spokesman for the state’s Department of Environmental Protection, which has not taken a position on the bill. “We’ve spent billions on upgrading, but there’s still a lot more to do.”

If the bill is enacted, New Jersey would join several other states, including Illinois, Pennsylvania and California, where ballot measures are not required to sell water systems to private developers.

“This is sort of a solution looking for a problem, because the option to privatize is already there. You just have to go to the voters,” said Mike Cerra, the director of government affairs at the New Jersey State League of Municipalities, an association and lobbying group for the state’s 565 local governments. “For much smaller things, you have to go to the voters. When you consider that water is one of the most valuable assets a municipality has, then [the sale of a water system] should go to the citizens too.”

The bill comes after years of sales of water systems in New Jersey to private companies.

About 300 of New Jersey’s municipalities, accounting for about 45 percent of the state’s population, have privately run water systems, according to the New Jersey Utilities Association, a trade group. In November voters in Camden approved the sale of their water system to New Jersey American Water, a subsidiary of American Water, one of the largest private water companies in the U.S. The state far outpaces the U.S. in water privatization; overall, only 13 percent of Americans are served by private systems.
So if your water system needs rehabilitation you can raise taxes or raise your water bills to a private company that will need to include profits and the purchase price in their billing. And this is a better idea how? I can understand why the political powers in New Jersey want to bypass voters in selling out.

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