In many Pennsylvania communities, sewer rates have spiked as private water companies have bought up wastewater systems from local governments. The push to privatize sewer services follows the passage of a state law in 2016 that allows the dollar value of water systems to include not just pipes and plants but market factors, such as their worth to the community, allowing them to be sold at much higher prices. The deals provide a cash boost for local governments, which can struggle to cover the cost of aging infrastructure. But critics say the public services and tax savings that governments might offer with sewer sale revenue don’t make up for the rate hikes, a phenomenon known as “taxing through the tap.” The Washington D.C. based organization Food and Water Watch said that more than 30 water systems in Pennsylvania — primarily sewer systems — have been sold off since the passage of the 2016 law. Another dozen or so local governments are currently considering offers, according to Jennie Shade, senior director of government relations with the Pennsylvania Municipal Authorities Association, which represents the special purpose districts that oversee public services and is seeking to protect local oversight. Read more here.
Source: Stateline; 11/7/2023