RWE Delays Sale of American Water on Wall Street

RWE Delays Controversial Sale of American Water on Wall Street

Statement of Food & Water Watch Executive Director Wenonah Hauter


“Amid third quarter profit losses, Germany-based utility giant RWE announced it would delay its controversial sale of American Water, citing “unfavorable” market conditions in the United States. This decision begs the question: will market conditions ever be favorable to the privatization of public water services?

“RWE Supervisory Board minutes obtained by Food & Water Watch indicate that the economic, infrastructure, and political conditions in the United States made profitability difficult, spurring RWE to unload its poor investment on Wall Street. RWE’s short history in the U.S. water business is yet another black mark in the long line of water privatization failures including Stockton, California, Atlanta, and New Orleans.

“American Water’s prospectus also indicates difficult conditions for profiting from water. The S-1 indicates the likelihood that some communities, such as Felton, California, which currently receives water from American Water, will use the power of eminent domain to purchase their water system and restore local, public control. Every potential investor should be aware of this risk, as well as the other large and unknown risks associated with the capital-intensive water industry.

“Water is a public trust and a public responsibility. The future of American water lies not in further privatization but in a renewed commitment to safe and affordable public water.”