Trade agreements like the North American Free Trade Agreement (NAFTA) could prevent states from regulating water distribution services owned by foreign corporations, according to some water policy analysts. The issue was raised by West Virginia's Attorney General, who tried to stop the purchase of the Kentucky-American Water Company by Thames Water, a British subsidiary of the German firm RWE Aktiengesellschaft. The concern is that the company could sue under NAFTA if state regulations capped water rates or limited profits in other ways. Thames argued that the international agreements are not relevant, but declined to waive its rights under them.

Ran 12/16/02