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Discover The Truth About Veolia’s Role and Work for the Pittsburgh Water and Sewer Authority

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Testimonials

“Our partnership with Veolia has improved the day to day operations of the utility resulting in significant cost efficiencies and improved customer service," said Alex Thomson, PWSA Board Chairman. "Veolia has provided stable leadership to PWSA and is helping us develop a plan to prepare the utility for the difficult challenges it faces in the future. We appreciate Veolia's continued assistance to the utility in addressing these challenges." - PWSA news release, Nov 14, 2014.

“[Veolia], which has managed the agency since last July, is responsible for about $3 million in new revenue and operational savings over the past year, said Robert P. Jablonowski, board vice president. “They're doing an incredible job for us,” he said.  - TribLIVE, July 10, 2013

“After three straight years of rate increases, this was the first year that the authority held the line on rates after touting a major turnaround under the tutelage of Veolia, a private management firm that was brought in to remake the troubled utility.”  - Pittsburgh Post-Gazette, Oct. 12, 2013

“Veolia's not responsible for the lead issue PWSA has — these lead issues are the result of the fact we have 75- to 100-year-old infrastructure,” (PWSA Board Chairman Alex) Thomson said in the Pittsburgh Tribune - Review on October 12, 2016.

False claims vs. truth

False claim

[In October], the PWSA announced it was suing the company. According to a press release, Veolia "grossly mismanaged PWSA's operations, abused its positions of special trust and confidence, and misled and deceived PWSA as part of its efforts to maximize profits for itself to the unfair detriment of PWSA and its customers."

Truth

During the partnership, Veolia helped PWSA realize at least $5.5 million in annually recurring revenue and efficiencies, institute financial controls that limited spending and increased accountability, and identify opportunities for operational efficiencies that have a direct impact on the utility’s bottom line. Over the past three years, the PWSA Board has:

  • reviewed and approved every Veolia contractual initiative through a formal process,
  • engaged, as standard protocol, a third party audit company to also verify the results of those initiatives,
  • hired away key employees of Veolia, including Jim Good, who was hired by PWSA as their Executive Director,
  • renewed on two occasions Veolia’s contract,
  • complimented Veolia and its contributions repeatedly in public statements, and
  • recognized millions of dollars in savings as a result of Veolia’s efforts.

Veolia met its obligations and fulfilled the requirements of our contract. We stand behind the work performed on behalf of PWSA. Recent attempts by the PWSA to put the blame on Veolia for its own problems are counter to the solid reviews the Authority gave Veolia over the past three years. The Board of the PWSA did not raise any of the claims in its filing until after Veolia finished its work and requested payment for services.

False claim

Last December, facing the class-action lawsuit, a state citation for changing corrosion controls, and mounting debt, Pittsburgh terminated its contract with Veolia. All told, PWSA had paid Veolia $11 million over the course of the contract.

Truth

The Authority simply chose not to extend Veolia’s contract for an additional year, as opposed to the claim that they “terminated” the contract. At the same time, they hired away key Veolia staff to join PWSA.

During the partnership, Veolia helped PWSA realize millions in annually recurring revenue and efficiencies, instituted financial controls that limited spending and increased accountability to address the Authority’s $800 million debt, and identified opportunities for operational efficiencies that have a direct impact on the utility’s bottom line. Veolia had no role in the decision to change corrosion control chemicals.

False claim

In May of 2015, a group of Pittsburgh customers filed a class-action lawsuit against the utility, Veolia Water North America, and the accounting company keeping track of PWSA bills, alleging that new water meter readers installed in 2013 "catastrophically failed and customers have received grossly inaccurate and at times outrageously high bills"—including increases of nearly 600 percent. "PWSA is acutely aware that the billings are wrong but do not hesitate for a moment to issue 'shut off' notices and then arbitrarily turn off water service," read the complaint. PWSA and Veolia declined to respond to the allegations.

Truth

The PWSA selected its metering technology and software infrastructure through a standard Authority procurement process. Veolia did not make the decision to upgrade the existing automated metering system, did not select the meter technology or install the meters, did not create billing estimates, set water rates, nor send bills to PWSA customers.

False claim

Reports insinuated that Veolia’s management caused high water rates. “By 2017, the average residential water bill will be $50 per month—triple the average Midwest cost, according to the Guardian.”

Truth

The opposite is true. Veolia’s work helped mitigate rate increases. During the partnership, Veolia helped PWSA realize millions in annually recurring revenue and efficiencies, instituted financial controls that limited spending and increased accountability to address the Authority’s $800 million debt.

The PWSA has instituted an aggressive schedule for water rate increases in an effort to meet a wide range of deferred maintenance and infrastructure issues. According to the Pittsburgh Post-Gazette, “The board of PWSA unanimously approved a graduated rate schedule for 2014 through 2017, which will help fund an aggressive $15 million capital improvement plan that will address everything from problematic waterlines in Shadyside to $28 million filtration system upgrade at the authority’s water treatment plant.”

While the Authority sets and approves any rate increases, Veolia’s work did help mitigate and slow rate increases.  In the same article the Pittsburgh Post Gazette noted, "After three straight years of rate increases, this was the first year that the authority held the line on rates after touting a major turnaround under the tutelage of Veolia, a private management firm that was brought in to remake the troubled utility.  While the authority brought in additional revenue, luring back a large industrial customer and finding cost-savings – it also ran out of money to make capital improvements from a bond issue in 2008."

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