Water Privatization Threats: AAA and the Right to Water

The struggle over water privatization in Puerto Rico is the next frontier in the colonial austerity agenda — following the LUMA Energy model that privatized the electrical grid.

AAA — The Water Authority:
- Autoridad de Acueductos y Alcantarillados (AAA) is a government-owned corporation
- Serves approximately 97% of Puerto Rico's population (3.2 million people)
- Operates 115 water treatment plants, 51 wastewater treatment facilities, and thousands of miles of pipes
- Founded in 1945 to provide universal water access

The Infrastructure Crisis:
- Water infrastructure is aging — many pipes are decades old
- Water loss: AAA loses approximately 60% of treated water to leaks and infrastructure failures (one of the highest rates in the Western Hemisphere)
- Service interruptions are common, especially in rural areas
- Water quality violations have been documented — some communities have received boil-water advisories
- Hurricane María devastated water infrastructure — many areas were without water for weeks or months

Privatization Pressures:
1. FOMB fiscal plans: The Fiscal Oversight Board has repeatedly included privatization or public-private partnerships for AAA in its fiscal recommendations
2. LUMA precedent: The privatization of PREPA's transmission and distribution to LUMA Energy (2021) established the template — take a failing public utility, hand it to a private company, raise rates
3. Consultants: International consulting firms have recommended AAA privatization as a 'cost-saving' measure
4. Debt: AAA carries significant debt — privatization advocates argue only private capital can fund needed upgrades

Why Privatization Is Dangerous:
Evidence from water privatization worldwide shows consistent patterns:
- Rate increases: Private water companies charge more — rates typically increase 15-50% after privatization
- Service cuts: Unprofitable areas (rural, low-income) receive worse service
- Profit extraction: Private companies must deliver returns to shareholders — money that could go to infrastructure goes to profits instead
- Loss of public control: Once privatized, it is extremely difficult and expensive to re-municipalize water systems
- Accountability: Private companies are less accountable to the public than government agencies

The LUMA Warning:
LUMA Energy's performance since taking over Puerto Rico's electrical grid in 2021 is the warning for water privatization:
- Rates increased dramatically
- Service quality did not improve — blackouts continued
- Corporate leadership received high salaries while workers were laid off
- Public accountability decreased
- The company blamed inherited infrastructure for continued failures

Community Resistance:
- Labor unions (particularly the AAA workers' union) have organized against privatization
- Environmental groups argue water is a human right, not a commodity
- Community organizations in rural areas — where privatization would mean worse service — are mobilizing
- The 'Water is Life' principle connects Puerto Rico to global movements against water privatization

The Colonial Dimension:
Water privatization in Puerto Rico follows colonial logic:
1. The colonial fiscal structure (PROMESA) creates austerity that degrades public services
2. Degraded services are used to justify privatization
3. Privatization transfers public assets to private (often mainland or foreign) companies
4. Profits flow out of Puerto Rico
5. Puerto Ricans pay more for worse service
6. The cycle repeats: create crisis → privatize → extract