Bulova Proposes Merger of Water Systems
By FALLS CHURCH TIMES STAFF
May 22, 2012
Sharon Bulova, chairman of the Fairfax County Board of Supervisors, has proposed that the City of Falls Church merge its water system with the County’s.
Writing in response to recent comments by Vice Mayor Dave Snyder, Ms. Bulova states she believes such a merger would lower rates for residents of both jurisdictions. However, she adds that if the City were to sell to its system to the “highest bidder,” rates for all its customers very well may increase substantially, as an investor-owned utility would have to charge higher rates to recover not only its purchase cost, but also the profit margin and tax obligattions that governmental utilities do not have.
Ms. Bulova also calls attention to a recent opinion by the Chief Counsel for the Army Corp of Engineers that the Washington Aqueduct, the provider of Falls Church’s water, is not permitted to sell water to a non-governmental entity. The chairman adds that Virginia law does not permit the State Corporation Commission to authorize the operation of an investor-owned utility in the County without the approval of the Board of Supervisors.
The full text of the chairman’s letter is available here.
By Falls Church Times Staff
May 22, 2012