Unions back Peoples’ pitch to become supplier of water

Peoples Natural Gas has landed backing from organized labor as the company tries to help operate Pittsburgh’s biggest water utility.

In a letter dated Friday, the Pittsburgh Regional Building and Construction Trades Council asked Mayor Bill Peduto and city council to support Peoples Water, a new subsidiary tied to the North Shore-based gas utility. Peoples wants to build a $350 million drinking water plant on the Allegheny River in O’Hara, the centerpiece of a proposal to work with the Pittsburgh Water and Sewer Authority and nearby water systems.

“We are convinced that Peoples Water is the only plan we believe that will create a water system that we all can be proud of, and showcase Pittsburgh as the city of the future,” trades council secretary-treasurer Thomas R. McIntyre wrote in the letter. The labor group is “respectfully requesting that the city join with us to see this vision take place.”

The building trades council encompasses 17 unions, including Cement Masons Local Union No. 526, the Laborers District Council of Western Pennsylvania and Steamfitters Local Union No. 449. Peoples has committed to using organized labor for the prospective plant and other improvements, projecting several hundred new union construction jobs.

Neither Mr. McIntyre nor leadership at city council commented immediately Tuesday. Council meetings are on recess until late August.

At Mr. Peduto’s office, spokesman Timothy McNulty said Mr. Peduto “remains focused” on PWSA’s work to replace lead service lines and develop a long-term strategic plan. The mayor has asked the municipal authority to craft a 12-year plan by the end of summer.

“Once its strategic and infrastructure needs are spelled out, he will welcome cooperation with any and all stakeholders and companies that can best address the authority’s needs,” Mr. McNulty said in a statement.

Ownership of the infrastructure must remain in public hands, Mr. Peduto has said.

Peoples has proposed what it calls a partnership arrangement to rebuild the leak-prone PWSA system. The partnership would have a board split between public representatives and Peoples Water officials. The entity would own new water pipelines put into the ground, and eventually the entire distribution system would be rebuilt and belong to the partnership.

Under the Peoples pitch, construction of a treatment plant hinges on participation by municipalities in the area, CEO Morgan O’Brien said. The plant could supply both the PWSA service area and adjacent communities, he said.

“The initiative reactions are very favorable from the municipalities. I’m very optimistic,” Mr. O’Brien said.

Skeptics have derided what they term privatization of water service. Peoples is owned by SteelRiver Infrastructure Partners in Sausalito, Calif. Other companies, including Pennsylvania American Water Co., have expressed interest in taking a leadership role at or outright ownership of the PWSA system.