Not a Drop to Drink by Ken Midkiff

Author:Ken Midkiff
Language: eng
Format: epub
ISBN: 9781577317531
Publisher: New World Library

The Consolidated City of Indianapolis Department of Waterworks and Veolia Water North America Operating Services, Inc. are committed to continuous improvement in the provision of services to water customers. This commitment is shown by the nearly $10 million pay at risk annually based on Veolia Water’s performance in key areas. Exhibit 12 of the Management Agreement between Veolia Water North America Operating Services, Inc. and the City of Indianapolis outlines the 40 incentive criteria. The incentive criteria address key areas including responsiveness to customer inquiries, delivery of quality water, success in controlling costs, and effectiveness in managing assets.12

Veolia acknowledges that success depends on a commitment from the city and the private water company — and that service comes before profits, which suggests that the company is committed to providing water at any cost. However, a lawsuit has been filed by citizens of Indianapolis against Veolia, charging that the opposite is occurring.13 At this time that lawsuit has not yet been heard.

In still other instances, public officials have become concerned about losing control of the water utility (or at least a portion of it) but the general public has not. The optimal scenario is for water consumers (citizens) to notice no difference. As Angela Woodall stated, only when boil orders became more frequent did she become concerned. The bottom line for citizen satisfaction seems to be safe, healthy water delivered at minimal cost. In Atlanta and Stockton, that bottom line was breached, the private companies lost their contracts, and the management and operation of water delivery returned to the cities’ water utility departments.

The concerns about for-profit companies are valid ones. There is simply no reason a city water utility should not be able to operate and manage a water delivery system as efficiently as a for-profit company. It appears to those opposed to privatization that city officials have punted the problems to a private company — and are more than willing to let the private company take the heat for raising rates. If old and obsolete water systems are in need of upgrades, the rates will need to be increased to meet the additional costs, whether a city or a private company is upgrading the system. Consumers will have to pay more, but by keeping the water delivery system in public ownership, they ensure that access to water won’t be held hostage by a profit-driven private company.

In May 2006, I had a conversation with a high-ranking official of a private water company who said the following:14

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