Risk & Business Magazine F.A. Peabody Insurance Spring 2017 | Page 6

L to R – John Clark, Greg Sherman - HWCO Crew 2017
Houlton Water Company:
BY: STEVEN FITZPATRICK,
F. A. PEABODY INSURANCE
Power To The People
J
ohn Clark, retired general
manager of the Houlton Water
Company, says he is glad to
be starting out his retirement
knowing he has left the
company in good hands with new
general manager, Greg Sherman. Greg
is only the fifth general manager of the
company since the town of Houlton first
purchased it in 1902. The dedication
of its employees is one of the biggest
factors in its success, and the company’s
rich history is proof of people working
together for the betterment of the
community.
In 1887, a devastating fire destroyed 21
buildings in Houlton, and already high
fire insurance premiums skyrocketed.
The town decided to build a water
system to increase safety and reduce
insurance costs. So, in 1880, the
Houlton Water Company was chartered.
Over the next few years, sewer and
electric departments were added, and in
1902, the town purchased all the stock
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in the company. Although other towns
in Maine have power, water, and sewer
departments, Houlton Water Company
is the only separate utility corporation
that is owned by a municipality.
On each of the white boards in the
meeting areas of the Houlton Water
Company, John Clark has written a key
company mantra on top: Safety first.
Quality second. Quantity third. He
remembers being a young engineer at
a Massachusetts power company and
accompanying his manager to the home
of a coworker who was killed on the
job to inform the widow of her loss. He
determined that he never wanted to do
such a thing again and has made safety
the top priority for himself and everyone
who works with him. Staff are trained
rigorously in safety through both in-
house training and training by outside
specialists. Because of these efforts, the
Houlton Water Company has won the
prestigious SHAPE (Safety and Health
Award for Public Employers) award from
the Maine Department of Labor every
year since 2012.
The Houlton Water Company boasts
electric rates that are 35 percent lower
than the Maine average. John and Greg
attribute these low costs to several
different factors. Because the company
is tax exempt, it can borrow money at
significantly lower interest rates. The
company is owned by the town, so
there are essentially no stockholders
and it answers only to customers. As a
nonprofit organization, all savings are
passed on to the customer.
In 1984, there were 33 full-time
employees. Since then, supervisors
and employees have stepped up to
take on more responsibility. Through
cross-training within their respective
departments, on-the-job training, and
professional development, the workforce
now numbers 21 yet still provides the
same reliable service at an affordable
price. These efforts increase efficiency