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United Water fails again

The city of Laredo, Texas, and United Water reached an agreement to part ways half way through a five-year water system contract. United Water had been singing a familiar tune—the cost of running the system was higher than the $9.8 million annually the company had agreed to in its contract. United Water asked Laredo officials to fork over another $5 million to recoup unexpected expenses, along with an additional $3 million each year.  City officials scoffed, pointing out, rightly, that United Water knew—or should have known--what it was getting in to when it signed the contract. After months of negotiation, the company has agreed to pay the city $3 million in exit fees, and the return the water system back under public control May 6, 2005.

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