Concerns raised about state senate water utility privatization bill

GREEN BAY — A bill working through the Wisconsin Legislature would make it easier for private companies to buy public water systems. But while some believe it could be a better option for some municipalities, others say a community water service is best kept in the hands of local governments.

When you turn on your faucet, or fill up your cup with water, you may not think about where the water is coming from. For cities like Green Bay and many others, the water comes from the city-operated utility.

"We really feel that the public is not being properly informed," said Nancy Quirk, the Green Bay Water Utility general manager.

"That they don't have - that this bill takes away the rights of the people to have input into the sale of the utility."

Quirk is talking about is AB 554 - which has already passed - and its Senate companion SB 432. They would ease restrictions on private companies, looking to buy municipal water systems, specifically when it comes to putting a sale up to a voter referendum.

"At this point, you don't know," said Quirk. "What if they want to replace 100 miles of water main in a year, that's going to put the rates way high. How are the rates going to be impacted by their usage?"

"This is an important issue and that's why we're here," said Staush Gruszynski, the political director with the Wisconsin League of Conservation Voters.

Gruszynski and other opponents of the bills held a press conference at the Brown County courthouse Wednesday afternoon. They say easier privatization could lead to less accountability and decreased water quality. The Senate bill will go for a full floor vote later this month.

"These bills were not introduced in response to any - to any request, from any local government here in Wisconsin," said State Sen. Dave Hansen, D-Green Bay. "No one here asked for these bills. No one here has said there is a problem with local water utilities."

Hansen says the Republican-authored bills are being pushed through on behalf of Pennsylvania-based Aqua America. Of the seven assembly legislators who initially signed on to the bill, one is a Democrat, State Rep. Josh Zepnick of Milwaukee.

FOX 11 wanted to talk to the bill authors; State Rep. Tyler August, R-Lake Geneva, and State Sen. Co-sponsor Frank Lasee, R-De Pere, were unavailable. However, assembly co-sponsor State Rep. Joe Sanfelippo, R-New Berlin, says the legislation provides municipalities an option, if it's needed.

"This bill, what it would do, is come up with a wider group of people that would be allowed to bid or negotiate with a municipality for their water utility," Sanfelippo said in a phone interview Wednesday afternoon, "and anytime you increase the competition, that's always a good thing for the taxpayers, because it will result in them getting the best deal or the most money for it."

I reached out for comment from the water company, Aqua America. A company spokesperson provided a statement, saying, in-part:

"Aqua America provides dependable, quality water and wastewater services to more than 3 million people across the U.S.," said Kimberly Joyce, Aqua America Director of Legislative and Public Affairs.

"Senate Bill 432 would offer a solution for municipalities across the state to partner with a regulated water utility such as Aqua America to enable infrastructure improvements, system growth for economic development opportunities, and reliable service to the community."

Aqua America currently operates water utilities in eight states, including Illinois.