New Microsite Houses Member Resources on Utility Valuation Reform - Truth from the Tap


New Microsite Houses Member Resources on Utility Valuation Reform

new Truth from the Tap microsite launched this month with a variety of resources for members to use in support of utility valuation reform, sometimes referred to as fair market value.

The microsite lays out the many benefits of reform, including safe and reliable water infrastructure, help for troubled systems, and access to capital for municipal priorities.

The site also includes a backgrounder, an infographic, and member case studies from Cheltenham, PAManteno, ILRansom, ILGeorgetown, IN, and Sheridan, IN.

Safe and reliable water infrastructure
America’s water companies have an unmatched record of providing superior water quality to customers. The voluntary sale of water and wastewater systems to experienced water professionals is a proven way to enable urgent infrastructure investments and provide greater expertise to municipal operations.


Help for troubled systems
Valuation reforms provide lifelines to troubled systems facing enforcement orders from state and federal regulators, allowing them to regain system compliance and retire utility debt. Without reforms, these systems would be valued at next to nothing, severely limiting the benefits of a sale.


Professional operators with a singular focus
While local governments have numerous competing priorities beyond water services, water companies are able to singularly focus their professional expertise squarely on providing high-quality water service to communities.


Strong consumer protections
Valuation reforms require all system sales to be reviewed by state public utility commissions via a transparent, open process. Regulators must approve all water system transactions and can reject an unreasonable purchase price or any sale that is not in the best interest of the public.


Access to capital for municipal priorities
Under valuation reforms, municipalities get a better deal for their assets and can put those resources toward other local priorities. Even municipalities that do not face urgent infrastructure challenges have found voluntarily selling water and wastewater systems can be an effective way to offload risk, monetize assets, and focus resources on other local needs. This may include paying down debt, funding pension obligations, making other infrastructure improvements, investing in economic development initiatives, or providing other government services.
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