Re:Millions of Americans Can't Afford Water
by Spooky23 on Tuesday June 23, 2020 @08:26AM
(#23612942)
Alot of localities sell the water system or the operating rights to private entities, who have a shareholder obligation to rip off consumers.
My partner ran finance for a municipal water utility in a small, old US city. Average bill for a consumer was around $400/year, about 40% of which was capital expense for the sewer system (which requires alot of investment), 15% water capital expenses, and the remainder opex. That's in a high-cost state with union labor, etc. It was a surface water system, so their filtering and pumping expenses were low.
The other thing to keep in mind that anything new is much more expensive. Eminent domain and construction is 10x more than it was a hundred years ago.
My partner ran finance for a municipal water utility in a small, old US city. Average bill for a consumer was around $400/year, about 40% of which was capital expense for the sewer system (which requires alot of investment), 15% water capital expenses, and the remainder opex. That's in a high-cost state with union labor, etc. It was a surface water system, so their filtering and pumping expenses were low.
The other thing to keep in mind that anything new is much more expensive. Eminent domain and construction is 10x more than it was a hundred years ago.