Why is the headline “Greensburg law firm gets $72K raise for Westmoreland water, sewer advice” (Jan. 17, TribLive) interesting? Not because of the sidebar covering the 9% rate hike for many customers. Also, “interesting” is the wrong word. The right word is “outrage” — actually, it’s a double outrage.
The first outrage — the one that allows the second outrage — was committed by financially and management ignorant — or was there a self-serving benefit gained? — county commissioners when they sold utilities to the Municipal Authority of Westmoreland County.
Pay close attention, especially you, Sen. Kim Ward and Rep. Eric Nelson; IRS and PUC too, because such “authority” companies need greater scrutiny and regulation.
Municipal Authority of Westmoreland County is a misleading name — it is a private company — a business with stockholders who elect a board of directors to oversee the business to make a profit for the stockholders. Nothing wrong with that — or with the fact MAWC pays someone else to manage its sewer and water systems. So, what is outrageous beyond the sale of public services to private business not being the most public beneficial way to provide water and sewer services?
The article says Scott Avolio “reviews all of our acquisitions … .” Acquisition costs are investor/stockholder costs — not a cost of serving customers; not costs that should affect what customers are charged. The outrage is the mindset, ignorance and lack of regulation that allows such behavior to occur. This is evidence that behind the closed doors of private utility providers lies philosophical differences between government, utility customers and private service providers.
Jim Baker
Greensburg