We don’t have anything against private companies

At the August 28th City Council meeting Craig Fore asked what is wrong with private companies. Nothing as long as competition is sufficiently strong to prevent one company from monopolizing the market. Some monopolies exist because of collusion, consolidation, or hostile takeovers and there are laws intended to rein in bad actors. But there are “natural monopolies” - industries where the cost structure creates a market with room for just one player. In such instances, the only alternatives for fairly providing the product or service are a public entity or a private corporation subject to close regulatory scrutiny.

Since cities started building sewer systems back in the late 1800’s, wastewater has been a natural monopoly. Reason - the capital costs associated with building the collection system and the treatment plant create significant barriers to entry. How many people you know have two sewer pipes going to their homes? How many places have two wastewater treatment plants serving the same customers? That’s certainly not the case in the Wimberley Valley or anywhere else I know of. So yes Craig, there is a difference between paying for sewer service and buying a car.

Here in Wimberley we faced two choices, either a City-owned system or one controlled by a private entity in a state where putting teeth into regulations is extremely difficult at best. And yes, in the mayor’s plan the city will retain ownership of the collection system. But, it is “magical thinking” to expect that, once the expensive connection to Aqua Texas’ treatment plant has been built, a city the size of Wimberley will have any recourse but to complying with the wishes of Aqua Texas and its legal team. I sure hope I am wrong.

Christine Middleton