" ... a public utility ends up being regulated by the local people it serves ... "

Not on Bainbridge Island. Nobody regulates the water, sewer, or SSWM utilities that City now operates. 

"Our Utility Advisory Committee is not here to represent the public's interest" ... UAC Chairman's statement in September 2016, and he is correct. It's an advisory committee to the City Council, and the City Council doesn't have the skill set, time, or interest to regulate the three existing utilities, much less a considerably larger utility.

The two COBI water utilities had the highest water rates in Western Washington ... it took a citizen lawsuit to get the City Manager/City staff to cut the employees they were charging into the utility by more than half. Water rates were reduced by 60%. Water ratepayers have forked over an excess of $6 million dollars that the City can't decide what to do with.

Sewer rates are the highest of any comparable city in Washington. 

And SSWM is a financial sinkhole.