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o <br /> <br />o <br /> <br />o <br /> <br />The state should undertake an objective, comprehensive and <br />well-documented analysis of how water/wastewater <br />privatization has fared in the U.S., in other parts of the world <br />and here in Texas and make those results widely available to <br />legislators, local governments and the public44; <br /> <br />The state should carefully evaluate the potential detrimental <br />effects of "take-or-pay" contracts for raw water or water <br />services on incentives for continuing improvement in <br />municipal and commercial water conservation; <br /> <br />The state should determine what measures are needed to <br />ensure that low-income ratepayers, in particular, are <br />protected from "rate-shock" associated with privatization of <br />water/wastewater systems or acquisition of older private <br />systems by larger private operators. <br /> <br />The state should not facilitate large-scale private water <br />supply projects or transfers without a thorough public debate <br />on the risks and benefits of such projects including, <br />particularly, the potential for adverse effects on rural areas <br />and the environment. <br /> <br />In its report to the Texas Water Development Board, Reed-Stowe & Company <br />provided some guidelines in the form of questions for cities that are <br />considering the need for using the competitive market to improve their water <br />and wastewater systems. These questions are useful tools for communities <br />and water utility districts.4~ (See Attachment # 3) <br /> <br /> <br />