OPINION: “What Price Control”

April 6, 2019 by Catherine Salisbury

The Hingham Board of Selectmen's decision to go it alone with regard to Hingham's statutory option to purchase the assets of Aquarion Water Company is the option that puts Hingham taxpayers at greatest risk. Although it is the expectation that water bill revenues from Hingham, Hull and Cohasset rate-payers will pay off Hingham's general obligation bonds through their water rates over thirty years, the risk of default on the general obligation bonds is real and would be devastating in the event of a serious occurrence. Hingham taxpayers' alone would have to pay off the debt. Is this risk worth assuming so that the Board of Selectmen/Water Commissioners can control all decisions regarding the delivery of drinking water to customers in three towns?

Serving residential water customers in Hingham, Hull and North Cohasset will be an extremely difficult business for a municipal corporation to conduct particularly since 40% of its customers live outside its jurisdiction.  While a number of Massachusetts cities and towns share a water supply, usually they create a water district with shared responsibilities and governance or one town supplies water in bulk to an adjoining town. The Massachusetts General Laws do not offer guidance for a proposal such as will be presented to the Hingham Town Meeting on April 22nd.  Although the Department of Environmental Protection will continue to impose water quality controls and withdrawal limits, the Department of Public Utilities will not longer engage in rate-setting, handling consumer complaints, or intercede in disputes between Hull and North Cohasset customers and the Hingham Water Commissioners. These responsibilities will become the Water Commissioners' responsibilities. Again, is the control worth these added responsibilities?

Finally, control is presented in the context of protecting Hingham's reservoir and aquifer. The Town has already protected its water supply by purchasing land and designating it as conservation land and by adopting over-lay zoning that restricts the use of toxic chemicals within the watershed and aquifer protection districts.  Aquarion owns land around its reservoir and its wells.  Hingham can continue with zoning restrictions and future purchases of land without owning and controlling a water company.

- Catherine Salisbury

1 thought on “OPINION: “What Price Control””

  1. Why should the reservoir and wells belong to an out-of-state monopoly charging about the highest water rates in Massachusetts, when we have the option of owning them ourselves?? It makes absolutely ZERO sense, IMHO.

    Reply

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