A TALE OF THREE CITIES
Dear Customers and Shareholders,
The headline reads:“Consumers Pay Both Sides in Water War; Fight Headed Toward Costly Courtroom Battle.”
This is from a 1999 Chattanooga Times Free Press report on the attempt by the city of Chattanooga to take the Tennessee-American Water Company by eminent domain.After several years, the “war” over the water system ended before the case ever reached the eminent domain stage, with Tennessee-American retaining ownership.
Actual cost to taxpayers: $750,000.Another headline reads:“Long Journey to City Water Buyout Begins.”
This is from a 2002 Peoria Journal Star report on the attempt – after a voter referendum passed – by the city of Pekin, IL to take the Illinois-American Water Company. In March 2004, the Illinois Commerce Commission ruled that the city’s proposal to take the water company by eminent domain is “not in the public interest.”
Actual cost to taxpayers: $650,000.Another headline reads:“Mayor Wants City to Purchase Own Water System.”
This is from an April 2002 story in The Nashua Telegraph about the start of the city of Nashua’s attempt to take the assets of Pennichuck Corporation by eminent domain. Now, more than two years later, the court cases are just beginning.
Actual cost to taxpayers to date: $600,000.
These three eminent domain cases have much in common. But what stands out most glaringly is the spending of large amounts of taxpayer money on consultant and legal expenses, with absolutely nothing to show for it.We’ve raised this issue before, and we intend to keep repeating the facts.The costs to Nashua taxpayers are quickly escalating, and this is only the beginning. Here’s how they may add up:
Taxpayer dollars the city has spent or committed to-date on legal and consultant expenses to pursue eminent domain, and additional taxpayer dollars the city estimates it will spend through the balance of 2004 and throughout 2005. Additional taxpayer dollars we estimate the city will have to spend to continue the eminent domain battle and defend legal challenges and appeals in 2005 and in the years beyond. Amount we estimate the city or customers may be required to pay to reimburse Pennichuck for its legal and other costs in defending against the city’s eminent domain actions. Amount of taxpayer dollars the city may be liable for to cover damages claimed by Pennichuck. No matter how you add it up, taxpayers may be on the hook for millions and millions of dollars.
We know from recent surveys that a majority of Nashua residents strongly oppose spending any more money to try and take Pennichuck’s assets.We share that view. Maybe it’s time property taxpayers of Nashua asked city leaders why they’re pouring
good money down the drain.But don’t bother calling for the opinions of Chattanooga and Pekin city leaders who pushed for the water system takeovers by eminent domain.They’re no longer in office.
Pennichuck Corporation
New Hampshire’s Oldest
Continuously Operating Business
May 23, 2004
