Sunday, July 23, 2017

CLIMATE CHANGE AND A WATER UTILITY'S DUTY TO SERVE

Climate change prophets have been raining alarms as to predicted adverse impacts on economies, culture, the environment and human activity in general. Water public utilities have not escaped such climate change speculation. Numerous articles and conferences have addressed the need for water utilities to adopt reactive measures to deal with assumed effects of climate change.

Sidestepping questions whether climate change actually exists and, if so, what are its causes, one should ask whether such concerns about it--particularly in the case of water utilities--are ignoring the real elephant in the room.

Inherent in the concept of public utility is the common law duty to serve all demands for service from all actual and potential users within its service area. Generally, this duty has been codified in legislation and acknowledged in court decisions and administrative agency regulations. In some instances, satisfaction of customer demand has been interpreted as including peak day demand as well as safe and adequate service in general. Over time, the duty to serve has been expanded to include service on a nondiscriminatory basis and at reasonable rates.

In short, the obligation of a public utility is to satisfy, at all times, the public requirements for water service. Failure to do so can result in consequences, ranging from penalties to involuntary acquisition by another utility.

So, perhaps there is nothing new about climate change speculation regarding water utilities. Whether driven by concerns over global warming, or by customer or demand growth, or by aging infrastructure, or any other driver, a water utility's obligation remains the same. It is perceived to have a duty to satisfy its customer demand. Whether a utility's response to such drivers may be conservation, re-use, alternative sources of supply, interconnection with other utilities, purchased water, etc., the key to an appropriate response would seem to rest with the duty to serve.

As an aside, one is reminded of the hysteria over "Y2K" in 1999-2000. Predictions and speculations offered dramatic adverse consequences if computers could not adjust to the new century. When the new date actually arrived, the parade of horribles marched to a whimper.

Chicken Little may have cried "the sky is falling", but the sun still shines where it always has.


© Daniel J. Kucera 2017

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