Pittsburgh, you have a problem. A water problem. And City Council is flirting with a permanent decision that could make it a whole lot worse by asking voters to ban any future partnerships with regulated, private water companies. This referendum is shortsighted and ignores the reality of the city’s crumbling infrastructure and the potential benefits of exploring all available solutions.
The arguments against private water companies — the tired refrains of increased rates and declining service – simply don’t hold water (pun intended!). These claims are based on fear, not facts, and certainly not on the experience of countless communities across the nation where private water companies are delivering safe, reliable service.
Let’s be honest: The historic public management of the Pittsburgh Water and Sewer Authority (PWSA) has been, to put it mildly, a disaster. Remember that scathing 2017 report from the Pennsylvania Auditor General? Here’s a direct quote: “The citizens of Pittsburgh have been plagued for the past few years by the dysfunctional operations of the PWSA, including a heavy debt load, deteriorating infrastructure, constant operational problems, lack of leadership, and frequent senior-level management turnover.” That’s pretty scathing. Politicians focused more on protecting their reelection bids has consistently trumped responsible investment, leaving us with a system desperately in need of repair.
Critics of private water solutions love to wave the “rate hike” flag. But guess what? PWSA rates already skyrocketed! Why? Because decades of neglect and underinvestment forced the PWSA to play catch-up. Since the state Public Utility Commission (PUC) stepped in back in 2018, rates have increased nearly 50% between 2018 and 2020, with further increases of 10% in 2021 and 16% in 2024. This isn’t a hypothetical future; it’s our current reality.
A well-regulated utility proactively invests in infrastructure with an understanding that preventative maintenance is cheaper than emergency repairs. America’s regulated, private water utilities collectively invest $5.5 billion in their systems every year to ensure water is safe, service is reliable and infrastructure is strong. And this investment pays off. In Pennsylvania, studies show that private water systems are significantly less likely to have Safe Drinking Water Act health violations compared to their publicly managed counterparts.
Here’s another inconvenient truth: PWSA already relies heavily on private contractors. This year alone, they’ve awarded over $90 million in contracts for critical projects like lead service line replacements and sewer rehabilitation. So, if private companies are already essential to maintaining the city’s water infrastructure, why Pittsburghers would slam the door on potential partnerships that could bring even more resources and expertise to the table?
One doesn’t have to look too far southeast to see a prime example of how taking solutions off the table when it comes to water and wastewater delivery is short-sighted and harmful. Baltimore did the very thing that Pittsburgh is now considering doing – blocking the government-run utility from working with private water companies — yet a quick internet search finds story after story about how the city continues to struggle on its own to provide safe and reliable water. And Baltimore is in fact still turning to the private sector for help, despite city council’s ban, spending tens of millions of dollars on private contractors because the public utility cannot handle the workload and provide service on its own.
The stakes are too high for Pittsburgh to let ideology cloud its judgment. The challenges facing PWSA demand flexibility and a willingness to consider all possible solutions. Banning private sector involvement outright is a reckless move that limits options and jeopardizes the future of the water system. We need to fully consider all solutions that could enhance efficiency and improve service delivery.
Ensuring safe, reliable and affordable water is a crucial responsibility of our city officials. Before we rush to a permanent ban on private sector involvement, let’s have an honest conversation about the realities of Pittsburgh’s water and wastewater system. We encourage voters to keep all options on the table so we can secure a future where all Pittsburgh residents can count on access to clean, safe and affordable service.
Robert F. Powelson is the president and CEO of the National Association of Water Companies (NAWC). He previously served on the Federal Energy Regulatory Commission and the Pennsylvania Public Utility Commission, and is a past president of the National Association of Regulatory Utility Commissioners (NARUC) and chairman of NARUC Committee on Water.