Jersey City
Privatizes Water Works

NEWS BRIEF

A five year competitively procured contract was executed to operate the system. The contract contains financial incentives for the operator to improve the percentage of delivered water for which payment is received. Currently more than 30 percent of Jersey City water revenue is lost through leakage or theft --- considerably higher than average.

It is expected that annual cost savings from more efficient operation will be at least $3 million (approximately one- third). The expected improvement in water revenues will have an important secondary effect, in that individual sewer rates are calculated from water bills.