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badtoworse

(5,957 posts)

22. In such situations, the privatized asset generally earns a regulated or agreed to return on equity

Thu Mar 15, 2012, 12:45 PM

Mar 2012

While the return on the asset represents a cost to the ratepayers, the city or county privatizing the asset now has money that can be used to retire debt or fund expenditures that would have otherwise involved borrowing or increased taxes. It's also possible that the private company can operate the facility at lower cost than a municipality.

On the basis of total cost borne by the taxpaers/ratepayers, I would say the transaction is likely to be neutral and might actually save money.

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Need solid examples of disastrous results of privatization of public works... [View all] tk2kewl Mar 2012 OP

I will add the results of my search to this thread as I gather them tk2kewl Mar 2012 #1

this looks like a good start tk2kewl Mar 2012 #2

Some links about water privatization failures SharonAnn Mar 2012 #27

Look to Canada's experiences - beware of Brubaker comments, though, she's a fascist blm Mar 2012 #3

thanks... i will check it out tk2kewl Mar 2012 #4

Privatization of public works is one Big Lie n/t meow2u3 Mar 2012 #5

well, may not be exactly what you're looking for, but Charter School proponent "White Hat zbdent Mar 2012 #6

similar path, thanks tk2kewl Mar 2012 #7

Here's an article about the City of Stockton's abortive attempt to privatize tularetom Mar 2012 #8

thanks tk2kewl Mar 2012 #10

Audit: Dominion Power overcharged customers $524M Blue_Tires Mar 2012 #9

UK has abundent examples as they privatised water, gas and rail and snagglepuss Mar 2012 #11

It's not possible to offer the very same service for the same kestrel91316 Mar 2012 #12

no doubt tk2kewl Mar 2012 #13

In such situations, the privatized asset generally earns a regulated or agreed to return on equity badtoworse Mar 2012 #22

Privatizers have an overwhelming incentive to raise prices and cut service... saras Mar 2012 #32

You need to do a little research on what a "regulated rate of return" means badtoworse Mar 2012 #34

"Regulated rate of return" means that someone, probably government, has the POWER to regulate... saras Mar 2012 #47

I've worked in the electric power business for 30 years and I know what I'm talking about. badtoworse Mar 2012 #48

But this is not how modern privatization is occurring. ieoeja Mar 2012 #51

How about citing some specifics badtoworse Mar 2012 #53

Enron is the mew model. Your work, like mine in making products last longer, is obsolete. saras Mar 2012 #55

This is the list of links I am going with for now, thanks to all who contributed tk2kewl Mar 2012 #14

this might help w8liftinglady Mar 2012 #15

Didn't Jefferson County Alabama go bankrupt, in part, from privatizing their sewer system? shcrane71 Mar 2012 #16

After reading the article, I get the impression that Jefferson County was at fault badtoworse Mar 2012 #21

Yeah, you're right. Looks like they took out a bond to pay for a sewer upgrade. shcrane71 Mar 2012 #24

A better framework is needed mathematic Mar 2012 #17

I agree... that was dumb reason to oppose privatization tk2kewl Mar 2012 #26

Enron...privitization of California's electricty... joeybee12 Mar 2012 #18

California's electricity was never publically owned. badtoworse Mar 2012 #19

+10, and the privatizers (Enron) laughed that Grandma wouldn't be able to pay her utilities. shcrane71 Mar 2012 #25

Pontiac has water contamination issues under United Water JHB Mar 2012 #20

Why are you assuming it will be a disaster? badtoworse Mar 2012 #23

I will always come from a point of view that says public works and public institutions... tk2kewl Mar 2012 #28

I'm a consumer and a taxpayer. I want to get the services I need at the best price badtoworse Mar 2012 #30

I am sorry you see yourself in such isolated terms as consumer and taxpayer... tk2kewl Mar 2012 #31

That is ridiculous and you are coming off as very naive badtoworse Mar 2012 #36

I guess we each see the world differently... tk2kewl Mar 2012 #40

We can agree on one thing badtoworse Mar 2012 #44

The self centered comment relates to the original premise that got us talking... tk2kewl Mar 2012 #45

If you give up public services to the private sector, you can't control how the ownership changes Erose999 Mar 2012 #35

See Posts 22 and 34 badtoworse Mar 2012 #37

Because every time something gets privatized Aerows Mar 2012 #33

If Alabama's water company is not regulated, I'd be very surprised badtoworse Mar 2012 #38

Everytime something gets privatized Aerows Mar 2012 #49

Why don't you try that again badtoworse Mar 2012 #52

Is it because of the demographic of the US, that it won't work as well Aerows Mar 2012 #50

Prisons for Profits Taverner Mar 2012 #29

It can go the other way, too. Oddly enough. Robb Mar 2012 #39

Different circumstances tk2kewl Mar 2012 #41

The first question that has to be asked is Horse with no Name Mar 2012 #42

that is a great talking point... thanks tk2kewl Mar 2012 #43

Except for co-ops, power companies in Texas were never publically owned badtoworse Mar 2012 #54

Google GM, trolleys, buses madokie Mar 2012 #46