INTERNATIONAL LAW WILL HAMPER WATER CONTROL - Utilities Being Sold To International Conglomerates

(12/09/2002)

By Bob Weaver International trade laws will likely hamper West Virginia's efforts to regulate water distribution by companies such as the German conglomerate hoping to buy West Virginia-American Water Company. The sale of the once public held utilities, mostly built by taxpayer money, will likely mean the state will lose control of the water systems, which will be invoking international trade treaties and laws negotiated by the U. S. government. Disputes could be directed to international trade courts for resolution. The further privatizing of the water systems could mean conglomerate decision-making might restrict expansion of public water in rural areas, unless they are very profitable. The notion of "water rights," and the right to have inexpensive, life-giving drinking water has long been a public issue. Attorney General Darrel McGraw asked the state Public Service Commission to temporarily vacate an order permitting the utility's New Jersey-based parent to be sold to Thames Water. Thames is a British subsidiary of the German corporation RWE. Shiney Varghese, who coordinates a water project for the nonprofit Institute for Agriculture and Trade Policy in Minneapolis, says McGraw is right to worry about the state losing control of its water supply. Corporate executives say it causes no more impact than the sale of electric power, timber and coal to larger business corporations, a history well-known to West Virginia. Water is a significant business commodity.

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