..I'll explain it real simple like.
Say you just inherited a 700 million dollar house from a benevolent benefactor. (I can guarantee you will soon be cursing that benefactor.) The roof leaks badly, it is structurally unsafe in places...it is in violation of various codes, and it has not been maintained for several years. But, the market says it’s worth 700 million. Oh, and this house has a whole bunch of people depending on it for vital services like shelter from the cold.
Now, almost immediately, you’re told to fix it up or there is going to be a severe penalty...something called a letter of consent from the EPA. You either fix it up, or you are going to lose control of your free house, and the government will come in and take ownership of it. Remember you put nothing into it up front...you inherited it...but now the heating bill, the insurance, and all the other costs associated with owning a 700 million dollar house are coming due along with a host of many other incidental things that you can’t afford to pay for.
What are you going to do? You can’t sell it to a private company by law...and if you could, the results would be even worse because a private owner could do anything he wanted with it without any concern for how you feel about your rising rent. Hence, the aforementioned law.
CFPUA can’t stop treating drinking water and sewer and fixing things...all of which costs serious money. (And they have the State and Federal government watching them to see they are doing the job right and in accordance with the law, or they’ll take it over.) The money and maintenance the previous owners were spending was grossly insufficient to the task...and they just bought lawn ornaments with the money you paid them.
Now I ask, did you get a free house?
If you never took microeconomics and don’t understand why most utilities operate as a monopoly, just say so.
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