Corporate Welfare

Corporate welfare

The El Paso Water Utilities Public Service Board (PSB) has spent $200 Million on corporate welfare. They plan to spend another $340 Million in the next ten years. Then they will have to spend $630 Million more to import water from Hudpseth County. The total cost of corporate welfare will be $1.17 Billion.

Who should pay for $1.17 Billion worth of sewer and water facilities to service new homes? Should the $1.17 Billion be passed on to the builders and developers who benefit from the facilities? Or should the $1.17 Billion be included in the water bills of existing customers who receive no benefit what so ever?

The $1.17 Billion is being included in water bills of existing customers. Existing water customers are paying $1.17 Billion for sewer and water facilities to service new water customers. Existing customers have no choice. They asked the PSB to charge these cost to builders and developers but the PSB refused.

Water customers then asked the Mayor and City Council to collect the $1.17 Billion from builders and developers in the form of impact fees on new homes. The Mayor and City Council appointed a nine member committee to decide the issue. The majority of the committee members were in the building industry. The issue was decided by the businessmen who benefit from the subsidy, not by the customers who pay for the subsidy.

The Mayor and city council passed an impact fee in the amount of $1,500 per new home. At that rate, it will take over two centuries to recover the $1.17 Billion that water customers are forced to pay for subsidies.

The issue should have been decided by unbiased experts recommended by the American Water Works Association. El Paso water customers deserve to be treated like water customers in other cities.