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A glass of water in Superior, a city that stands on the shore of the largest freshwater supply in the world, costs more than almost anywhere else in the state.

One reason for the high cost is that the city’s drinking water system is owned by a private corporation, the only one of Wisconsin’s roughly 80 major municipal drinking water systems that isn’t publicly owned.

In setting water rates for Superior, the state Public Service Commission (PSC) awarded the water system owner, Allete Inc. of Duluth, Minnesota, a return on investment of more than 9 percent, the highest in Wisconsin.

The author of a bill to make it easier for out-of-state corporations to buy Wisconsin drinking water systems — and harder for citizens to block them — says there is no need to worry that a private owner would jack up water bills, because the PSC sets prices.

But the PSC factored in the profit expectations of the company’s shareholders and higher debt costs of private utilities in setting Allete’s base water rate higher than any other large water system.

“It is typical for private water utilities to have higher rates and lower access than municipal systems,” said Jenny Kehl, director of the UW-Madison Center for Water Policy.