PROVIDENCE -- The announcement this spring that Providence was considering selling off its biggest asset, the Providence Water Supply Board, brought cheers from some and concerns from others.
Then it largely faded out of sight as the special subcommittee the City Council established to explore the possibility did little over the last several months.
Now the council has reauthorized the subcommittee's existence for the next 90 days, and expects that it will come back with real information at the end of that stretch.
"Hopefully, we'll have some information in the next 90 days," said subcommittee Chairman Michael Solomon. "We've met with some consultants, and with some people who have shown interest."
The City Council expects to hire a consultant to put together a report on the feasibility of selling the system.
Providence first started exploring a sale of the Providence Water Supply Board in March. It includes the Scituate Reservoir System, serves about two-thirds of the state's residents, has more than 900 miles of pipes and operates 6 reservoirs covering 4,600 acres.
The city hopes to glean $400 million to $500 million from a sale.
The proceeds would go toward paying off the massive debt to the city's pension system. The Public Utilities Commission regulates the Water Board in such a way that that the city cannot make a profit off the sale of water, and city officials have long looked for a way to make money off the system.
Some, including former Cranston Mayor Stephen P. Laffey, publicly aired concerns that the Water Board's sale would lead to a dramatic increase in water rates for customers across much of the state. Initially, Providence officials said that a water rate increase would not necessarily follow the sale.
Solomon now acknowledged that it is likely that any buyer would seek to raise rates following a purchase -- though any hikes would require approval from the Public Utilities Commission.
But Solomon said that for Providence residents, this would still be an excellent deal. Any rate increase would be shared by customers across half the state, while the Providences finances would be dramatically bolstered by the sale -- likely reducing the long-term tax burden for Providence residents.
"If it can be sold, I think it would be a good deal for the city," Solomon said.
Council Finance Committee Chairman John J. Igliozzi argued that a sale would be good for all of Rhode Island, because a new owner would be able to invest in the water system in a way that perpetually cash-strapped Providence could not.
"Water is economic development. If we are able to broker a deal it'll be good for the state's economy as well as the city's," Igliozzi said.
"You'll have a bigger company who will have the ability to expand and invest in the infrastructure," he said.
The water system sale took a back seat through the spring and summer as Providence tried to get its annual budget situation sorted out, Igliozzi said.
"I'm actually quite excited. We're going to fast-track that process and get that going right away," Igliozzi said.
dbarbari@projo.com

This is definitely what we need to head off at the pass. Man we would be really be looking at increases just like Narraganset Electric ala National Grid sucks us all in with distribution charges and ooops we bought our needs too low...We got snookered by the legislators...for their bennies and not ours...Now water too...MAN! Oh Man!

Dear Arthur,

Ask the people of Hartford, Conn.of what occurred when the School Committee voted to use corporations to operate their school sytem.  The experiment lasted all of one and one half years. I was reading where private French corporations are building a highway from the Mexican border to Canada.   That is a wonderful idea, allow terrorists access to all national drinking water supplies.

peace,

Jim

Time to get involved and adovocate and keep watching