Watermark > Winter 2001 > Features: The Controversy Over Efficient Utilities.com: What Should Be Done? AWWA Director’s Report

Features

• Drinking Water Protection What’s going on? What’s going on?—By Rick Corbett, BCWWA President
• The Controversy Over Efficient Utilities.com: What Should Be Done? AWWA Director’s Report—By Dennis Mitchell, P Eng.
• Small Water Systems Course Roll-out Small Water Systems Course Roll-out An Unqualified Success
• Bottled Water: A Suitable Alternative?

The Controversy Over Efficient Utilities.com: What Should Be Done? AWWA Director’s Report

By Dennis Mitchell, P Eng.

My previous reports have briefly discussed AWWA’s business venture into Web-based procurement of services and materials in the water industry through EfficientUtilities .com. Those articles and the correspondence this initiative has generated within AWWA, has prompted me to write this article to provide background and hopefully present both sides of the argument this controversy has raised.

Long time members of AWWA have suggested that the controversy Efficient Utilities.com has generated could irreparably harm the Association. A major rift has developed between Utility members that support the initiative and the increased competition that would result, and Manufacturer members that feel AWWA should maintain their role as a scientific organization and stay out of the “business” side of the procurement of water material and services.

Late in 1999 and through the summer of 2000, AWWA was approached by a number of Internet companies and then a consortia of manufacturers and private utilities, to look at participating in an ecommerce Web site. Confidentiality agreements were signed to protect the consortia’s business interests, and ultimately the AWWA Executive Committee agreed to invest $US500,000 in e-commerce development. This venture was ultimately discontinued, and a business plan was developed to partner with ENINet (Environmental Network International) in the development of a Web site.

Through December 2000 and January 2001, negotiations with ENI-Net continued, along with consultations with the Association’s “Manufacturer’s Advisory Council” (MAC). Correspondence between AWWA and the MAC acknowledge concerns raised by the MAC, and actions taken by AWWA attempted to address the concerns. Concerns raised by the MAC at that time were:

• E-commerce would threaten the viability of “distributor’s” and “manufacturer’s rep” businesses.
• The speed with which the site was being developed was unacceptable to the MAC. They felt the timeline should be driven by the resolution of issues.
• The timelines for the advisory committee set up to assist the two sides were deemed unrealistic.
• The MAC recommended AWWA maintain control of the venture.

AWWA felt they had addressed these and other related concerns and proceeded with the development of the Web site, ultimately launching it on September 26, 2001 (type in “EfficientUtilities.com” to your browser and check it out). Through the development process, the MAC continued to voice their concerns at the same time as a Utility advisory group provided support and encouragement to AWWA and the venture.

With the launching of the site, the controversy has swelled. AWWA Utility members see the site as an opportunity for them to solicit a broader market place for their requirements, while the Manufacturer members see the site as AWWA venturing into the marketing and sales of equipment and services in contrast to the Associations historic mandate of representing the scientific interests of the industry.

To emphasize their dissatisfaction with AWWA, a number of large manufacturers have adopted a strategy of boycotting conferences and seminars. This involves the Manufacturers and their representatives NOT displaying at national and local events, significantly reducing the revenues these events generate for AWWA and the respective Sections. To put this in perspective, currently all ductile iron pipe manufacturers, all valve and hydrant manufacturers, most PVC pipe manufacturers, all ductile and cast iron fitting manufacturers and numerous ancillary manufacturers have announced their intention to withdraw from participating in the 2002 New Orleans convention and Section meetings.

As the BC Section AWWA Board member, I have been sent correspondence from AWWA, separate groups representing Manufacturer's and Distributors, and other AWWA Sections, voicing their concerns and positions with respect to EfficientUtilities.com. To say the least, all positions are passionate and committed to their respective arguments. One of the most notable communications is the "Action Taken by the New England Water Works Association," one of the AWWA's largest most respected Sections. The Board of that Section has passed a resolution requesting AWWA take dramatic steps to suspend EfficientUtilities .com until a full and open discussion of the AWWA Board and positive Board vote reconfirms this venture. AWWA provided a comprehensive response to the New England Section, however have not endorsed the Resolution.

This will obviously be a major topic of discussion of the AWWA Board at the Winter Meeting in January, at which time I will be required to vote on resolutions regarding EfficientUtilities.com. The issues are complex and positions on both sides are firmly held. We will have to take a stand on one side of this issue or the other, and by receiving input from BC Section AWWA members; we will establish our position and make it known. I look forward to your comments. Please email me your views: dmitchell@uma group.com.