How Widespread are Municipal Water Utility Buy-backs?
The Town of Milford, Massachusetts is acquiring its water company. On 25 July 2017, the town’s legislature proceeded to acquire privately-held Milford Water Company for US$63 million.
At the center of municipal utility buy-backs (sometimes referred to as re-municipalizations) is public resistance to rate increases and water quality, both of which have influenced the town’s decision. Currently, 42 municipal water system buy-backs are on the books.
In this Research Note, Bluefield water experts analyze the popularity of municipal buy-backs, reasons behind the move, and compare it to the rate of investor-owned utility acquisitions.
More U.S. municipal water market analysis from Bluefield.