Columbus Messenger
3500 Sullivant Ave
Columbus, OH 43204
Attn: Managing Editor
Rick Palsgrove
In response to a recent letter to the editor by David K. Little, President, Ohio American Water, Mr. Little stated that OHAWC is not a foreign-owned company. However, company history was not mentioned. American Water was founded in 1886 as the American Water Works & Guarantee Company, and in 1947 reorganized and renamed the American Water Works Company. In January 2003, the German utility company RWE acquired the company for $8.6 billion, which included a transfer of $4.0 million dollars in debt to the parent company and renamed it American Water. The sale was announced in 2001, however was delayed since the PUCO in each of the 27 states where it holds contracts had to first approve the transfer of ownership. Many public hearings showed that the public was not convinced that having a huge foreign corporation operate their water systems would benefit them. Concerns were raised that RWE would use American Water to finance its huge debt by increasing rates. 2003 was also the year when our rates started to skyrocket. RWE never saw the heady profits it anticipated from its international water empire. In April 2008, American Water shares began trading on the NYSE (AWK). In November 2005, RWE announced plans to sell American Water. The sale was part of RWE’s plan to focus on selling electricity, natural gas and water in European markets. In 2008 RWF spun off American Water Works, but retained a majority stake, which has since been reduced to about 25%.
Mr. Little also stated his concern over the public relations campaign of using an out-of-state public relations firm. Perhaps Mr. Little was worried of what happened in Tennessee when the citizens there hired Waterhouse Public Relations firm to build a Web site and rally customers against a proposed rate increase. Granted, Waterhouse is indeed a Tennessee based company and their resulting campaign helped pressure government regulators to approve only about a fifth of the rate increase Tennessee American Water (same company as OHAWC) was asking for. Why should we not hire the best possible people, regardless of their location to help stop this company from trying to make us pay for their huge debt because the their poor management and business skills.
Citizens need to stand together and say no to companies like OHAWC who are trying to make us pay for their poor decisions. The PUCO also has to do what is right and tell these corporations like this that is not the responsibility of the average tax paying citizen to pay for poor management decisions. Get somebody to lead this company who know how to run a business.
David Rogers
Madison Township, Ohio
