Implications of deregulation

Abstract

Pressure r^e water industry to change. It win chang^nemles of engagement, as well as the roles of water utilities. As major energy users, larger water utilities can wield some market power. The savvy water utility manager will implement load management techniques, practice strategic procurement, aggregate with other buyers, shop for rates, invest in distributed resources, and sell excess generating capacity. Water utilities will need to step up their risk management and planning efforts. Resource management will be affected, particularly with respect to hydroelectric power. Restructuring could intensify competition among water users, affect responsibilities for quality, and potentially undermine utility demand management programs. How utilities interact with customers will also change. Customers are being courted and will expect more in terms of prices, products, and services. Basic customer services could be unbundled. Water services might be customized, as well as rebundled with other products. Water utilities might still look like monopolies, but they can no longer afford to act like them.