Recently, there has been talk in England about nationalizing England’s private water utilities. Former Wisconsin PSC Commissioner and FERC Commissioner, Branko Terzic, makes the case that England’s water utilities are not struggling because they are private, but rather because of a regulatory failure. Plus, Branko delves into how and why the U.S. system of utility regulation developed and much more.
In this session, you’ll learn about:
Branko’s background as a utility engineer, appraiser, consultant, regulator and executiveHow and why England privatized its water utilitiesEconomist Stephen C. Littlechild’s role in English water privatizationWhy England’s water rates skyrocketed after privatization but electric, gas and telephone utilities all fellWhy the United States has a predominantly publicly owned system of water utilities (in contrast to predominantly privately owned electric, gas and telephone utilities)Why English regulation of water utilities has struggledWhy high leveraging and capital structure of English water utilities created problemsHow poor regulation created capital structure problems and low water quality problemsTypical capital structure of U.S. utilitiesWhy most U.S. utilities capital structure typically has 40-50% equity despite debt being the cheaper capitalWhy interest rates for debt and equity capital increase as debt’s share of the capital structure increasesWhat ringfencing isBranko’s thoughts on fixing the English regulatory schemeAn overview of how water concessions workA brief history of Enron’s foray into private waterWhy market fragmentation is holding U.S. water systems backResources and links mentioned in or relevant to this session include:
Branko’s LinkedIn profileBranko’s websiteThanks to each of you for listening and spreading the word about The Water Values Podcast! Keep the emails coming and please rate, review and subscribe to The Water Values Podcast on Apple Podcasts if you haven’t done so already. And don’t forget to tell your friends about the podcast and whatever you do, don’t forget to join The Water Values mailing list!