TO: EDITORS, NEWS DIRECTORS

DATE: January 31, 2000

FOR: IMMEDIATE RELEASE

Commission Water Experts Tapped by Egyptian Officials

PHOENIX, January 31 -- A delegation of Egyptian government officials recently consulted with Arizona Corporation Commission staffers on ways to solve water and wastewater problems in Egypt. Commission experts were tapped by the foreign government because of similarities in Arizona's climate and geography. Harsh desert conditions pose challenges in water management for both Arizona and Egypt.

In Egypt, the government regulates and supplies water to residents and workers. Concerns over pollution, population growth and scarcity of water resources have led Egyptian officials to explore alternatives, including privatization.

According to information supplied by the delegation, Egypt depends on the Nile to supply 95 percent of its water. With annual population growth of more than one million people, the per capita water supply is expected to drop from 922 cubic meters (243,592 gallons per year per capita) in 1990 to only 337 cubic meters (89,035 gallons per year per capita) by 2025. A country is generally deemed to be water stressed if annual supplies are less than 1,000 cubic meters, or 264,200 gallons, per person.

Commission Chairman Carl Kunasek met with the twelve-member delegation who represented Egypt's 27 states. "This was an excellent opportunity for the Commission staff to share their expertise in water and wastewater management." Chairman Kunasek believes that privatization could mean that more money is available to come up with alternative treatment and delivery plans. "Egypt is at a crucial stage here," he explains. "All citizens throughout the country pay the same flat rate for service. Privatization would certainly change that. They were very interested in how we oversee pricing."

"They recognize that no one state or government has a perfect answer to these complex issues," said Bob Kennedy, the Commission's consumer service program manager. "I was particularly impressed by the Egyptian officials' openness and frankness. They want to create a better and more efficient system for their people. I am pleased that we could offer them guidance in this process." Commission staffers gave presentations on rate cases, performance monitoring, public hearings and environmental and economic considerations of plant operations.

The delegation toured the Scottsdale Water Treatment Plant and Citizens Utilities Sun City office before departing for San Diego.