Our View: Water use battles
play out in rate hike talk
Lack of demand, not overuse, is what could hurt southern Maine's public water customers.
Over the past two years, a big concern in southern Maine was that the giant transnational Nestl?orporation was going to bleed an underground aquifer dry in order to sell bottles of Poland Spring brand water all over the world.
Now that Poland Spring's proposed deal with the Kennebunk, Kennebunkport & Wells Water District is dead, the more likely problem for York County homeowners and business people is higher water rates. The culprit? A lack of demand.
The down economy and last year's wet summer meant there was less water used throughout the region. Instead of selling water to Poland Spring, use decreased by 11 percent. Even with cost reductions, there is not enough money coming in to pay the bills, according to the district's administrators.
It is ultimately up to the Public Utilities Commission to determine if the numbers justify a rate increase, but if they do, people who will have to pay more for their water can reflect on last year's debate.
In 2008, the town of Wells put a moratorium on large extractions of water, and work was done on developing an ordinance that would regulate companies like Poland Spring, limiting the amount they could pump each day and requiring monitoring to ensure that water quality would not be affected.
Even though it was the focus of the regulations, Poland Spring campaigned for the ordinance, but it was defeated at the polls last fall.
The company made a reasonable case. It did not plan to deplete the aquifer and had an interest in maintaining its quality. The company would also have been adding good-paying jobs in a tough economy.
But the political struggle often seemed to be less about the amount of water in the aquifer than an anti-corporate development crusade. It wasn't so much about how much water would be pumped, but more about who was pumping it. The anti-Poland Spring side won and they can reflect on whether it was worth it.
But so will the landlord, laundromat or restaurant owner who might have just been managing to stay afloat financially during this recession before seeing a hike in their water rates. And those people may think that a deal with a water bottler would be worth a second look.
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12 COMMENTS
Jim said...
The “anti-corporate development crusade” seems to be making headway in America all the way through our Federal Government. As these anti free markets pro government control crusaders win we will see less consumer product choice and far higher consumer costs. For evidence of this don’t look only at the increased water costs in Wells but at any and all countries that have attempted this failed experiment though out the history of mankind.
April 6, 2010 at 7:00 AM Report abuse
middleone said...
I wish PPH had done a more in depth analysis. I thought if demand goes down for a product, the price goes down, too. If demand goes up, isn't the price supposed to go up until its so high that consumers stop using it? If demand is down, and your not making enough, cut expenses. The article doesn't explain why they can't do that. And, I still think water could be the natural resource that could boost ME's economy, just like oil does in the mid-east. Clean water is in short supply in other areas of the country and world. If sustainably managed, water could be a source of revenue for the state, and maybe we'd get out of this recession, sooner. Just don't sell it in small plastic bottles - use large, refillable, reservoirs.
April 6, 2010 at 7:13 AM Report abuse
2B said...
We are asked to conserve water, then, we are charged a higher rate because usage is down. Why are rates so high when there is so much water available in Maine? Water, Water, Water, everywhere! Perhaps rain barrels are the next step to cut the rate increases.
April 6, 2010 at 7:39 AM Report abuse
youknowit said...
Being an extremist on the right, or in this case the left, means never having to say I'm sorry. In their own pea brains they are ALWAYS right, so don't hold your breath waiting for the anti water bottling folks to "reflect" on anything other then how absolutely correct they were in their anti corporate agenda. Jobs? We don't need no stinkin' jobs!
April 6, 2010 at 8:32 AM Report abuse
HM2 said...
All should read this months edition (April 2010) of the NATIONAL GEOGRAPHIC magazine which is totally devoted to the water supply and usage throughout the world. Learn who has the water and who doesn't. This is well written and easily understood and explains why companies like Nestle want this resource...especially if they can get it without being taxed. This is a real 'eyeopener' and should not be missed. If you don't have access to NGM it is as close as your public library. Just be careful when crossing the street going to the library you don't get killed by one of the big Nestle trucks.
April 6, 2010 at 8:36 AM Report abuse
Chew said...
Sometimes a little common sense applied to a common interest can go a long way in creating a "deal" that benefits all concerned. I was not suprised at the outcome of the debate and I am not suprised at the resulting impact which is the focus of this article. However I am dissapointed that bias and pre-conceived opinions seem to get in the way of common sense more and more often.
April 6, 2010 at 8:50 AM Report abuse
youknowit said...
middleone, There are fixed costs of maintenance, and facilitating water facilities. Less use in this case means less taxes collected to pay for those fixed costs, and less taxes collected that go into the towns coffers. Water extraction/ expansion COULD have a boost on Mine's economy, and almost did before people on the far left eliminated the possibility of expansion. I buy and sell for a living, an evil capitalist, and I can tell you for sure that when demand goes down for a product, production costs go up for that product. Unfortunately most liberals don't understand the basics of finances, yet want to control what everyone else does. Check out government oversight, and look what a mess its given us.
April 6, 2010 at 8:53 AM Report abuse
John said...
No one has still explained how Poland spring ahs the balls to call their stuff spring water when they pump it out of the ground. It meets the criteria of a spring in no interpretation I have ever heard.
April 6, 2010 at 9:27 AM Report abuse
SallyS said...
Poland Springs has been a part of Maine for a long time. I for one am glad to have them here and glad that they are staying in Maine when so many other businesses are leaving. The company has always had such a good reputation environmentally, and with the public. I don't understand what was wrong with those folks in York County? I have a friend who lives in Hollis, and they are thrilled to have Poland Spring in their town. Last week's rain only underscores the fact that Maine has got plenty of water..Maybe PS should come bottle the waster that is seeping into my basement? Why wouldn't want to sell some of it to a company that only emphasizes the "special place" story of Maine? Why don't the nay-sayers leave this poor company alone! They aren't hurting anyone.
April 6, 2010 at 11:24 AM Report abuse
Hipupchuck said...
If you use more water they charge you more. If you use less water they charge you more. Huh?
April 6, 2010 at 12:19 PM Report abuse
youknowit said...
The same people who demanded that Poland Spring cease their expansion efforts, now are too ignorant to understand economics 101 supply and demand, and yet in their profound self important ignorance demand control of the entire process. So sit on that water folks, and watch the excess slowly disappear back into the ocean and air, while your bills go up instead of down, which they would have if you'd allowed a small portion of your excess water to be sold by Poland Spring. congratulations, you're fools! Hoard your water now, don't want to run out. It would be funny if it were not so pitiful!
April 6, 2010 at 12:55 PM Report abuse
bfrank said...
yet another case of "Maine...the way life should be" haha. yeah, higher taxes, and fend off the companies that want to add jobs to our state. can't wait to move over the border. let's face it, companies such as P.Spring are going to get the water somewhere, they will (in their own interests) maintain aquifiers and the towns that aren't brain-dead will be the ones to reap the benefits. it's called "Darwanism"
April 6, 2010 at 1:08 PM Report abuse