CHARLESTON, W.Va. — Since the 2014 chemical spill at Freedom Industries in Charleston there has been a growing chorus for a publicly owned water system in the region. Advocates for a Safe Water System is an organization seeking an exploration of how to take over the West Virginia American Water System and put it into the control of a public body.
“We are definitely interested in exploring the ways this can happen,” said Karen Ireland who is with the organization and a member of Charleston City Council. “We think it’s time elected officials here who by and large are not happy with West Virginia American Water start to look at real alternatives.”
Other towns across the nation have already taken the step. It happened in Missoula, Mont. where the city took over the privately run system through eminent domain.
“Fundamentally we believed a water system is a monopoly in a community like ours,” said Missoula Mayor John Enger. “As such it either needs to be either really well regulated or in public ownership.”
Enger is in Charleston this week to discuss how his city took over the local water system and the pitfalls and obstacles toward such action. Eminent domain isn’t the only option, other cities have used a structured buyout of the system. The ideas will be laid out Thursday during a forum at the University of Charleston.
The West Virginia American Water system is different from the one Enger described. The system serves all or parts of nine West Virginia counties and would be a far broader undertaking than just the city of Charleston. However, state law allows for regional water boards to oversee such an enterprise according to Ireland.
One of the biggest complaints from the public about the private water company, both here in West Virginia and elsewhere, is a lack of system maintenance. Enger said in his town it was such an issue it was the catalyst for the change.
“The private equity firm that owned it and the subsequent owner was all about returning investment to shareholders and not about taking care of the system,” said Enger.
His town inherited a system in disrepair when they took over. Although Enger said he wasn’t against raising rates in the future when needed, his town has been able to use the current rate which was generating a profit to the former owner to make the necessary system upgrades. Ireland believes that could be the case with West Virginia American Water as well.
“When you’re looking at the rate of return shareholders are getting from West Virginia American Water and when we’re able to do a feasibility study or model we expect to see similar results,” she said. “That money can be reallocated and maybe in a rate neutral way for quite a while.”
The matter will be further explored Thursday at the University of Charleston.