Water Utilities Industry Trends

Consolidation

Larger utilities have easier access to capital, can apply "best practices" to all their local systems, and have greater resources to apply to the regulatory process for rate increases. Small systems are therefore often willing to be bought by large operators.

High-Tech Security

Water treatment system operators are investing in new high-tech tools designed for early detection of even minute changes in water quality, as utility companies scramble to complete federally mandated vulnerability assessments to water and wastewater plants and utilities. New analytical tools, like potentiostatic measurement devices, particle counters, and toximeters, are changing standard monitoring practices. Vendors expect established technology-based tools, such as surveillance cameras and geographic information systems, to become commonplace in water treatment systems as they add features and drop in price.

Water Infrastructure Financing

Many commercial water and sewer companies oppose suggestions that the federal government assume a large role in funding necessary and massive investments to upgrade the nation's water infrastructure. A large federal subsidy program, which would benefit only public water systems, would disadvantage commercial systems. Instead, the industry wants to remove volume caps on the use of Private Activity Bonds (municipal bonds that fund investments in privately owned assets to advance the public good).