A Victory for Public Water in NJ

by Tara Lohan · 2010-04-08 08:42:00 -0700
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Proponents of public control of water are claiming victory in New Jersey this week as the state Supreme Court decided that a proposed sale of part of the city's water utility must be decided by a public vote. The 5-1 ruling reversed an earlier ruling by an appellate court.

The Times of Trenton reports that the legal battle over the issue began over a year ago when the city decided it wanted to sell portions of Trenton Water Works to New Jersey American Water Co., saying that the sale would stave off tax hikes. An group of residents countered the action, arguing that it was simply designed to close budget gaps, the Times reported, and would sell off the city's last asset.

Food and Water Watch, which has helped communities fight the privatization of public water utilities, hailed the decision. In a statement, the executive director said, "to have denied the referendum would have undermined fundamental principals in state law that guarantee that water resources are managed for the benefit of the public." So, now it will be up to Trenton residents to decide.

Many private companies are seeing the pressure on municipalities right now that are trying to stave off budget deficits and economic shortfalls and are hoping to cash in. Residents in Akron, Oh., and Milwaukee, Wisc., both recently voted against water privatization, and for good reason. Food and Water Watch has documented how often the biggest losers in privatization deals are residents. Their list of case studies details the big problems: poor service, rate hikes, sewage overflows, inadequate maintenance of infrastructure and equipment, and so on.

The essential problem comes down to the fact that private companies are beholden to their shareholders and not their customers, plain and simple. When it comes to environmental measures, Food and Water Watch has also found that privately-run utilities are less likely to have conservation and efficiency programs -- after all, if you're in the business of selling water, you're not going to be too likely to push conservation. (For California readers, the analysis comes to bear on the upcoming Prop 16, which would make it more difficult for cities to opt for public utilities.)

Will Trenton say no to water privatization? We'll likely see in the next few months.

Photo credit: mira66

Tara Lohan is a senior editor at AlterNet.org where she heads up the environment, water, and food sections. Her work has appeared on the websites of The Nation, Mother Jones, the Huffington Post and in Yes! Magazine.
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