New Report: Growing Water Scarcity in U.S. is 'Hidden' Financial Risk for Investors Owning Utility

New Report: Growing Water Scarcity in U.S. is 'Hidden' Financial Risk for Investors Owning Utility Bonds

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The report, The Ripple Effect: Water Risk in the Municipal Bond Market, evaluates and ranks water scarcity risks for public water and power utilities in some of the country's most water-stressed regions, including Los Angeles, Phoenix, Dallas and Atlanta. The report shows that some of the nation's largest public utilities may face moderate to severe water supply shortfalls in the coming years, yet these risks are not reflected in the pricing or disclosure of bonds that public utilities rely on to finance their infrastructure projects. There are about 50,000 public water utilities in this cou

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First off, I haven't read the report yet, but what a control tool this would be. No-one is going to complain about anything if they don't have water. Not saying it is manufactured, but the term 'don't let a crisis go to waste' immediately springs to mind. Some sources are saying as early as 2012, as a time-line when we could begin to see dramatic shortages. What do you think of this?

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To jump in on the Subject without reading the report, my neck of the woods is defined as one of the UKs stress locations.. Yet even this years long dry Summer our reservoirs haven't fallen below 60%.

And even tho they (and the water companies) push the water shortage, to the point next year we will be charged a "Summer premium" the whole region is a big FO aquifer.. The Geography course I had in college on the region taught the school of thought that this region alone had enough water to service the UKs needs for 300 years..

But hey, I guess that it is not profitable to know that.. can't charge the summer premium if people knew how much water we really have.. So for me I am sceptical of anyone coming out with water stress tests claiming my region (or any other region) is facing a shortfall..

Personally until I look into the geography I think the whole thing is being put our their to increase the amount the water companies can charge... I guess that I feel is that energy companies get to charge what they want and perhaps the water companies have felt left out and are now playing catch up, so investing in a water company is not exactly a risk, more like a reason to make money charging through the nose for what little water they tell you they have left..