Community Rejects Water Sale
By: Ben Manning
Updated: April 13, 2010
HOUTZDALE, CLEARFIELD COUNTY - A local community says no sale and the elected officials take notice.
Houtzdale Borough was in early talks with a company that wanted to buy the local water authority, but the people overwhelmingly said they weren't interested. The water authority sent out a survey asking folks what they thought about this; 1,300 people said they weren’t interested, only six were for a sale. The council voted unanimously to stop talking with the company.
More than a hundred people came to the Houtzdale Borough Council meeting Monday night. There wasn't enough room for everyone inside, so the people waited outside for answers. A possible water authority sale wasn't even on the agenda. But that's what everyone wanted to talk about. After discussing it for an hour, council voted unanimously to stop all communications with Pennsylvania American Water.
Borough Council President Paul Clancy said the company came to them about buying the local water authority. They took the beginning step towards considering a sale because they need more money in the borough.
But he says the people have made it clear what they want and now the council is going to sit down with the water authority and try to come up with other ways to raise money.
John Gallagher is the plant manager at the water authority. He says it's nice to see all the local people come out to support them.
The Pennsylvania American Water Company has served 18,000 people in Philipsburg for decades and just last year the company acquired parts of Wallaceton and Boggs Township.
Houtzdale Borough was in early talks with a company that wanted to buy the local water authority, but the people overwhelmingly said they weren't interested. The water authority sent out a survey asking folks what they thought about this; 1,300 people said they weren’t interested, only six were for a sale. The council voted unanimously to stop talking with the company.
More than a hundred people came to the Houtzdale Borough Council meeting Monday night. There wasn't enough room for everyone inside, so the people waited outside for answers. A possible water authority sale wasn't even on the agenda. But that's what everyone wanted to talk about. After discussing it for an hour, council voted unanimously to stop all communications with Pennsylvania American Water.
Borough Council President Paul Clancy said the company came to them about buying the local water authority. They took the beginning step towards considering a sale because they need more money in the borough.
But he says the people have made it clear what they want and now the council is going to sit down with the water authority and try to come up with other ways to raise money.
John Gallagher is the plant manager at the water authority. He says it's nice to see all the local people come out to support them.
The Pennsylvania American Water Company has served 18,000 people in Philipsburg for decades and just last year the company acquired parts of Wallaceton and Boggs Township.
Comments
The Pennsylvania American Water Company is an investor-owned company. Any investor-owned company's first priority is always to increase dividends for their shareholders. What happens if they don't? The shareholders sell their stock and move their money (investments) to where they can make a profit. Then what happens?
How does AmWater make a profit for their shareholders? The HMA can use the same business plan to LOWER water bills. It's not their job to make a profit for the community/municipalities. Their job is to run an efficient public utility that serves their customers.
Now the question is, how did AmWater plan to make a profit from HMA for their shareholders? Corporations do not make business plans, approach a buyout, expecting a loss.
How does AmWater make a profit for their shareholders? The HMA can use the same business plan to LOWER water bills. It's not their job to make a profit for the community/municipalities. Their job is to run an efficient public utility that serves their customers.
Now the question is, how did AmWater plan to make a profit from HMA for their shareholders? Corporations do not make business plans, approach a buyout, expecting a loss.
Becky B.
April 13, 2010 at 1:58 pm
