FLINT WATER CRISIS COULD COST SUPPLIERS $300 BILLION
The ripple effects of the city of Flint’s tainted-drinking-water crisis could eventually prompt water suppliers to spend more than a quarter-trillion dollars on infrastructure upgrades faster than anticipated, a leading rating agency said Friday.
Fitch Ratings said in a note that utilities are stepping up education efforts to bolster public confidence while evaluating existing treatment protocols on water quality. Significant investment in service line replacement could be coming if the federal Environmental Protection Agency quickly alters existing rules to make them more stringent in the wake of Flint, the rating agency said.
“We believe the capital costs to replace these lines could exceed $275 billion,” Fitch said.