Privatization advocates are encoura...

Privatization advocates are encouraging cities over the U.S. to privatize their municipal water utilities to increase utility efficiency. contrarys of privatization contend that the divestment of a money-losing water utility may assist a city's store in the short term, nevertheless only at a steep charge to consumers once the city's rate-setting ability is transferred to a private buyer In reality, one as well as the other sides are right.

Privatization can increase efficiency, however turning a public monopoly into a private monopoly is not always the best way to maximize public benefits from a utility. Rather, looking for areas where competition can be introduced to enhance productivity is the preferable way

Jersey City, N.J., newly established a public-private partnership with United Water Resources, Harrington Park, NJ The city will maintain ownership of its water utility facilities while contracting with the water company to manage these assets. The agreement exhibits an ...