Posted on 05/25/2006 8:48:07 AM PDT by hedgetrimmer
RWE AG, a German-owned utility company, purchased the American Water Works in 2001, for 7.6 billion. The American Water Works was founded in 1886, and serves 1,300 communities in 23 states from the East Coast to the West Coast.
RWE now has AWW up for sale, and U.S. Mayors are saying: "We want control of our own water."
At the time RWE purchased AWW, California questioned if regulators could hold multi-national utilities to state and local laws, under international trade agreements.
RWE/Thames Water, which is a subsidiary located in England, promised that the customers would not have to pay for the $7.6 billion cost of buying AWW. They told those concerned that this debt would be paid off through a 60-year growth strategy. However, some areas have been protesting AWW's unusually high rate increases and declining maintenance.
Illinois has been a leader in taking back local control of the water. Other states are joining the battle. Tennessee and Kentucky are loudly voicing their desire to take their water systems back under local control.
Mayor Laurel Prussing, of Urbana, Illinois, spoke out at RWE's annual shareholder meeting, in Essen, Germany, on April 13. Prussing told the group:
"Our experience in Illinois has taught us that we need local control of our water systems. We are willing to pay a fair price, and we believe investors will benefit more from selling to us than by wasting money on a political war, while neglecting much-needed maintenance."
On April fifth, a water-system Legislation bill passed both Houses in Illinois. This Legislation will help Champaign, Urbana, Pekin, and other Illinois towns acquire their local water systems, by the use of eminent domain, without having to go through the Illinois Commerce Commission.
This bill will give local municipalities the opportunity to own their own water systems, without the approval of the ICC.
Bollingbrook, Homer Glen, and Plainfield in Illinois are exploring a joint purchase of their communities' water utility, according to Food and Water Watch. A letter of intent has been signed by the mayors of the three cities, regarding their concerns about Illinois American Water Work's service and billing practices.
Questions are being raised about whether RWE will sell their AWW assets piecemeal, or as a whole. How will this sale effect contracts, such as the one with the U.S. Department of Defense, for the privatization of utilities of Fort Bragg, North Carolina?
RWE is a huge energy company, owning more than 640 subsidiaries in 120 countries. Reports are they want to focus on energy, which is their primary industry.
Germany is not the only foreign nation to own water in the United States. France also owns a number of local water-systems.
There is growing concern regarding the infrastructure of the United States being sold to foreign countries. Chicago became the first U.S. government entity to lease a toll-way to private investors. Last year, the city negotiated a deal with a 99-year contract on the 7.8 mile Chicago Skyway, with a Spanish-Australian group for $1.83 billion.
Negotiations have been under way for Indiana to sign a lease with the same Spanish-Australia partnership, to operate the 157-mile tollroad known as the "Main Street of the Midwest." This strip runs along the state's Northern border, and is strategic for linking the East Coast to Chicago.
Where should the United States draw the line on privatization? Are we selling our security with our infrastructure?
Privatization of our ... "roads, tunnels, bridges, electricity supply facilities, mass transit, rail transportation, airports, ports, waterways, water supply facilities..." was legalized when President George H. W. Bush signed Executive Order 12803, on April 30, 1992. Private buyers were assumed to be "American," but now we know any corporation, or any country, can buy America, and apparently, some in government as well, according to Nick Ivanovich in his article, Exporting Security.
We have become conditioned to the global-marketing concept. Our children are told they are "global citizens," and we are responsible for the global environment, global economy, and global equity. Finally, we discover we are no longer a sovereign nation, as we ride the slippery slope to globalism.
We find ourselves facing an oil crisis, because of our dependency on foreign nations. There is an obvious effort to push farmers off the land, and import our food from foreign countries. Will we find ourselves facing the same situation with our water?
Now, if I could just get Baltic Avenue...
...without firing a shot
Doogle
It's not worth it. Nobody ever lands on it and when they do you never get much money. Save your $150 for something you can put a hotel on.
Then buy it.
The value comes in the end game when you need a safe spot to land on.
"The private companies do not have a vested interest in providing for smaller markets. Think of it, if you owned the water for Chicago and some little downstate town, which one would you spend money on to fix up and maintain?"
I've been in the water business for 25 years, and I do not find this statement to be true! Our small company was purchased by a very, very large water company, and they have sunk a huge bundle into upgrading the plant, the system, etc..
AB1467 was recently passed allowing for 4 new toll-road projects in California. While the voters get to vote on the $37 Billion worth of Bond proposals, they won't get to vote on the privatization factor, which makes the entire plan equal to $116 Billion. News reports said the Australian groups have already shown interest.
"Where should the United States draw the line on privatization? Are we selling our security with our infrastructure? "
Dumb quesitons ...
What ? Are we worried the Australians are going to pick up the toll road and plop it down outside Sydney ?
Everyone forget the big Japanese buying spree over here not that many years ago - when shortly thereafter they sold everything back to us at a BIG loss ?
Aqua American. Here they're called Aqua Ohio. The city of Philadelphia, where they're called Philadelphia Suburban, is their largest system, but they're all over Pa. and Ohio. Great company! Stock has doubled a couple of times.
What is the stock symbol?
With what, pea-shooters?
Sorry, don't know. I'm not a stockholder. Wish I had bought in earlier though!
They used to be called Consumer's. Names have changed as the company has grown.
Are we worried the Australians are going to pick up the toll road and plop it down outside Sydney ?
No, but in a war time scenario, they could certainly forbid the passage of US military vehicles on the road, if they wanted to
Then those properties become immediately seized and nationalized under the Enemy Act
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