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Privatization of Water Services in the United States: An Assessment of Issues and Experience (2002)
Water Science and Technology Board (WSTB)

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Privatization of Water Services in the United States: An Assessment of Issues and Experience

TABLE 1-3 Community Water Systems in the United States by System Size and Ownership (estimated for 1999)

 

System Size (in Terms of Number of Households Served)

Total Number of Systems

Percentage of Total

Ownership

<100

101- 500

501-3,300

3,300-10,000

>10,000

Public

7.7

34.8

68.6

78.1

87.7

23,187

43

Private

39.5

34.6

26.6

21.4

12.2

17,795

33

Ancillarya

52.8

30.6

4.8

0.5

0.1

12,942

24

Total systems

 

31,904

14,040

4,356

3,276

53,924

100

NOTE: Data are from EPA’s Drinking Water Information System Factoids: FY1999 Inventory Data. Ownership percentages are based on EPA’s 1995 Community Water System Survey.

aAncillary systems deliver drinking water as an adjunct to their primary business (e.g., mobile home parks, retirement homes).

SOURCES: Adapted from EPA (1997; 1999a).

A March 2001 survey (PWF, 2001) reported results from the 17 largest firms seeking water/wastewater privatization contracts in the United States (Table 1-4). Collectively, these companies reported they were paid $917 million in calendar year 2000 for operating 2,273 publicly owned facilities (most often treatment plants but also solids handling, pump stations, and other components) with an aggregate design flow of about 7 billion gallons per day. These fees for contract services were paid by 1,882 different municipal, state, and federal government clients (PWF, 2001).

Table 1-5 lists the values of a variety of investor-owned water companies, ranging from regional operators to multinational conglomerates. Any listing of water companies should be considered somewhat fluid, as the number of private water companies has changed significantly over the past five years through mergers and acquisitions (Table 1-6).

TRENDS IN AND TYPES OF WATER PRIVATIZATION

Deregulation and privatization trends in the airline, telecommunications, and energy industries have significantly influenced the water supply and wastewater treatment industry. However, based on data from the National Association of Water Companies (NAWC), the actual proportion of water services provided by private water companies, whether measured by customers served or by volume of water handled, has remained relatively steady in the United States since World War II, and currently stands at roughly 14 percent (EPA, 1997).

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