Click here to act now to protect local ownership of water.

Just four years after boldly acquiring the largest private water utility in the United States, international utility giant RWE announced that it was getting out of the water business. In its 2001 annual report, RWE called the U.S. “the world’s most attractive water market” and hailed water as “blue gold.” Now, RWE hopes to unload its U.S. subsidiary American Water through an initial public offering, or IPO, on the New York Stock Exchange in late 2007.

Referring to the devastating events of September 11 just days before the 2001 acquisition, then-President and CEO of RWE Dietmar Kuhnt said, “Rather than delay, we are making this announcement today because we believe it is more important than ever to show the world that we are investing in America. We believe in the courage and resiliency of its people and remain ever confident in its future."

Four years later, RWE’s investment and confidence dried up. In November 2005, RWE decided to sell American Water and the rest of its international water business. Minutes of RWE’s Supervisory Board meetings acquired by Food & Water Watch cite “considerable political resistance to privatization of the water sector” and “performance problems and weak growth at American Water” as reasons for the global corporation’s quick exit from the water business.

Meanwhile, an increasing number of communities across the country that are served by American Water are growing weary of corporate control of their water. Faced with rate increases of 20% and even 74% in some cases, inoperable fire hydrants, declining customer service, and a lack of accountability, some of these communities are exploring leaving American Water by purchasing their local water system and investing in local control of their water. “It is to everyone’s advantage,” says Mayor Ron Littlefield of Chattanooga, Tenn.

Food & Water Watch is working with citizens around the country to ensure that the public is informed about RWE and American Water’s track record as we approach the IPO for American Water. We want to hear from you. Contact us at water(at)fwwatch(dot)org.
 

Read More from Food & Water Watch on Corporate Control

Just four years after purchasing American Water, the largest water company in the United States, RWE abruptly decided that water is a “very local business,” and that building a global water empire country-by-country was impractical.

As Germany-based utility company RWE prepares to sell American Water on Wall Street, communities around the country are resisting private ownership of water and complaining of poor service and rate increases by the company. Read our corporate profile on American Water, which highlights grassroots efforts to hold American Water accountable. 
 

Learn More

• Read our press release on RWE’s leaked board minutes, and download a copy of the minutes.
  
• Check out our latest statement to RWE's shareholders, found on page 2 of RWE Counter-Motion 2007. For the 2006 statement, download: RWE Counter-Motion 2006.
• Read the U.S. Mayors' joint statement to RWE urging RWE to allow interested municipalities to negotiate the purchase of their water utilities before RWE proceeds with an IPO for American Water.