Sewerage authority privatization is stirring up debate in towns
Source: BY MOLLY BLOOM AND MIKE KARSNAK, Star-Ledger (NJ), Wednesday, May 03, 2006
Faced with rising fees for sewage treatment, the Rahway Valley Sewerage Authority, which provides wastewater treatment for 11 Union and Middlesex county towns, is considering privatizing its operations. Proponents of privatization on the authority's board of commissioners say they are trying to cap rapidly rising costs before the sewerage fees really hurt the taxpayers. But some commissioners fear that privatization will lead to even higher sewerage rates as well as a lack of attention to maintenance, environmental and safety concerns. ..... In a typical privatization arrangement, an agency or town retains ownership of the water or sewerage system and signs a contract to cover the operation and maintenance of its distribution pipes and possibly its billing system. The private company takes over the system's day-to-day operations.