Bad Sewer Privatization Bill Released from Committee Today

The Senate Budget and Appropriations Committee released S3870 (Sarlo) today. The bill allows municipalities to sell sewerage systems to public utility operators. The bill would replace the current law, which authorizes municipalities to sell sewerage facilities to public utilities subject to a voter referendum.

“We oppose this bill because it allows for privatization over direct government spending. When something goes wrong, the public utility will be responsible rather than the governing body of the town. This will take away oversight and transparency. This bill is a way for public utilities to get around the voter referendum and do back room deals. This will also cost ratepayers more because they will need to take on the cost of paying for the system. The public utility can make a 14% profit on the sale by raising rates, and each year the rates will go up to make a profit for their investors. This bill will mean that as rates go up, service and transparency will go down,” said Jeff Tittel, Director of the New Jersey Sierra Club.