Pushing back on for-profit utilities | Morning Newsletter

Good morning, Philly! Welcome to this mostly sunny Sunday. We’ll reach a high near 56.

That earthquake was certainly an interesting way to kick-start the weekend, and folks did not hesitate to come through with hilarious memes. Did you feel it? The Inquirer’s brilliant team of interactive designers put together a visual guide to how the event played out in our region.

Our main read focuses on for-profit utilities in Pennsylvania. In recent years, their acquisitions of water and sewer systems from municipal governments have at times prompted local political backlash, as some customers have seen their monthly water bills double or even triple in cost. Now, discontent has reached something of a boiling point as customers sour on rate increases and lawmakers weigh potential changes to a law that one state representative said “is not a good deal for consumers.”

— Paola Pérez (@pdesiperez, morningnewsletter@inquirer.com)

If someone forwarded you this email, sign up for free here.

Act 12, which was first passed in 2016, encourages the consolidation of smaller water and wastewater systems under private ownership, ultimately changing how such assets are valued.

But in the last eight years, for-profit utilities in the state have scooped up more than 20 water and sewer systems from municipal governments. Municipalities have used sale proceeds to pay off debt, invest in capital projects, and avoid tax increases. Now, these companies serve a total of more than 1.2 million customers in Pennsylvania.

The result: Consumers are bearing the brunt of more rate hikes year after year. They pay $85 million more annually than they would have without Act 12, according to Patrick Cicero, the state’s consumer advocate.

Potential changes: In Harrisburg, legislators from both parties are considering changes that range from an outright repeal of the law to limiting the share of acquisition costs that utilities can pass on to customers.

And in February, the state regulator that oversees utilities for the first time denied an acquisition of a water or wastewater system under the fair market valuation process established by the law. All of that came after a state court last summer blocked the regulator’s approval of one company’s purchase of the public sewer system in East Whiteland Township, Chester County.

National implications: How this plays out could have a wider impact. American Water and Essential Utilities are the two biggest publicly traded U.S. water and wastewater utilities by market capitalization, and both are headquartered near Philadelphia.

Notable quote: “Public companies have used Act 12 to mark up the valuation, mark up the price, and then pass that price along to shareholders,” said State Rep. Leanne Krueger (D., Delaware), who is cosponsoring a package of bills related to the issue. “Act 12 is not a good deal for consumers, and it needs reform.”

Go deeper on the renewed scrutiny of water privatization, the historical rate increases approved by the state Public Utility Commission, and how the utilities are lobbying in Harrisburg.

How do you feed a team of professional athletes? Just ask chef and executive culinary director Eli Collins, who does it at least three times a day. (Not to be confused with Eli Collins of a.kitchen, though they happen to be good friends.)

With a team of three, this Eli Collins feeds the Sixers from September through June, and at various points during the off-season. They prepare elaborate breakfast and lunch buffets for 45 to 70 people every day. The meals are made entirely from scratch using ingredients from Philadelphia’s top purveyors.

So besides buffets, what do the players like to eat? In the morning, Collins and Julie Cushing, his associate director of culinary nutrition, start getting texts from players about their custom meals. “There are guys who are creatures of habit. They want the same thing every day, like shrimp pesto or a chicken sandwich,” Collins said.

Keep reading to learn more about this individual described as “equal parts chef, diehard sports fanatic, administrator, and I daresay, cheerleader.”

Monday’s solar eclipse is approaching. In what year did the last total solar eclipse cast its shadows across the United States?

A) 1975

B) 1991

C) 2005

D) 2017

Think you know? Check your answer.

Hint: This former Sixer played eight seasons with the team and was just inducted into the Basketball Hall of Fame 🏀

CLOUDS LINGO

Email us if you know the answer. We’ll select a reader at random to shout out here. Cheers to Kenny Cherrin who correctly guessed Friday’s answer: SEPTA. This regional transit system has its fair share of both haters and frenzied fans. A viral tweet caused $10,000 in SEPTA merch sales — in one day!

🎶 For today’s Sunday track, we’re listening to “Messages” from Jane Penny’s debut EP, Surfacing. It goes like this: “Found happiness without meaning / Now I just wish I could take it for granted again.”

👋🏽 I’m going to spend part of my day making this DIY solar eclipse viewer. Thanks for spending part of your morning with me. Have a great day.