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08 Privatization of Services
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08 Privatization of Services
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Last modified
11/8/2005 11:24:54 AM
Creation date
12/5/2003 11:54:32 PM
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Template:
AGENDA
Item Number
8
AGENDA - Type
MISCELLANEOUS
Description
Privatization of Water Services
AGENDA - Date
12/8/2003
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customers. AquaSource's customers from South Texas to North Texas have <br />complained to the Texas Natural Resource Conservation Commission about <br />inadequate water pressure, water outages, wastewater pollution, insufficient <br />water supplies and high rates. A highly publicized example of the troubles <br />AquaSource has had is when it bought the Willow Run Utility in northwest <br />Houston, which served a low to moderate- income subdivision. After <br />AquaSource's acquisition, resident's rates were raised from $6.80 a month <br />plus $1.00 per 1000 gallons to $24.57 a month plus $2.00 per 1000 gallons. <br />According to AquaSource the rates represent the "true costs" of operating the <br />water system.4~ <br /> <br />Many of the systems that AquaSource and other investor-owned utilities <br />have purchased in Texas have been small, under- funded, deteriorating <br />systems. Some have been out of compliance with the Safe Drinking Water <br />regulations, requiring costly upgrades. For AquaSource and other investor- <br />owned utilities, it is reasonable to pass these costs on to the consumer. <br />However, such "rate shocks" could adversely affect the provision of basic <br />services to low and even moderate- income ratepayers if adequate protections <br />are not in place. <br /> <br />~eCeive~ ~o~e ~000 frO~ <br />c~s~o~ers w~O ere ~s~i~ ~e st~e ~o roil ~ate i~c~eases <br />~es~o~se to ~aSo~rce s red, est to the ~NRCC to est~bHsh a <br /> <br />~i~i~izes r~te i~cre~ses to co~s~ers <br /> ~s s~e~t ~llio~ to t~e 2~0 water 26 <br /> <br />I~ settlement ~ee~e~t re~c~e~ <br />~ro~ed its red, est o~ t~e ~e~s <br />Co~issio~ to c~ar~e ~ifo~ ~te for sewer fees to <br />its ~e~s c~sto~ers its ~l~ce~ ~So~rce ~ree~ <br />est~blis~e~t o~ fo~ ~e~o~I for ~i~co~or~te~ ~e~s <br /> <br /> <br />
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