News

New York Times Discusses Missoula and Its Water System- In American Towns, Private Profits From Public Works

In an upscale Washington, D.C., restaurant in 2012, an executive from the Carlyle Group, one of the world’s largest private equity firms, put his arm around the mayor of Missoula, Mont.

“Mayor,” the executive said, “are you ready to buy a water system?”

Three years later, the comments by the executive, Robert Dove, were recounted from a witness stand in the Missoula County Courthouse. The city was suing Carlyle, which ultimately refused to sell to Missoula, to gain control of its water system.

Missoula is one of several places in recent years that have tried getting back their water systems from a private company. But after waging costly battles, the towns cannot always guarantee the same services at lower rates.

At the time of that dinner in Washington, Missoula was the only city in Montana that did not own its water system — and John Engen, Missoula’s mayor, wanted to change that. So, months before, he had supported Carlyle’s purchase of the regional water company (Park Water) that owned Missoula’s local system (Mountain Water), believing that Carlyle would then sell Mountain Water back to his town.

But the mayor’s plans derailed.

By DANIELLE IVORY, BEN PROTESS and GRIFF PALMER

Full Story: http://www.nytimes.com/2016/12/24/business/dealbook/private-equity-water.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region®ion=top-news&WT.nav=top-news

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.