Audit Finds Veolia Partially Complied With Contract
An independent audit of Milwaukee's wastewater operations found Veolia partially met its contract obligations while identifying staffing and maintenance shortfalls.
Updated on Nov. 10, 2026 in Utilities
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An independent audit commissioned by the Milwaukee Metropolitan Sewerage District (MMSD) found that Veolia, which has operated the district's two wastewater treatment plants for 18 years, partially complied with its contract. The audit found permit compliance was met almost all the time, but identified shortfalls in staffing, timely corrective maintenance, and maintenance recordkeeping.
Why it matters
The findings arrive as MMSD has selected Jacobs Engineering over Veolia for the next 10-year plant operations contract, and whistleblowers had alleged poor treatment of Veolia employees and equipment raised the risk of untreated sewage entering waterways. The audit's 64 recommendations will shape how MMSD oversees wastewater facilities going forward.
The audit documented only two weekly permit exceedances over the 100-month review period from March 2018 to June 2026, with combined sewer overflows within permit limits every year. Whether the identified staffing and maintenance shortfalls will affect future permit performance has not been determined.
The players
Veolia
A global utility services company that has operated MMSD's two wastewater treatment plants for 18 years and is now contesting its treatment in the contract process.
Milwaukee Metropolitan Sewerage District (MMSD)
The regional public utility responsible for wastewater treatment across the Milwaukee area, which commissioned the independent audit and selected Jacobs Engineering for the next contract.
Jacobs Engineering
A large engineering and consulting firm selected by the MMSD commission to take over the next 10-year wastewater plant operations contract.
The details
The independent audit, conducted by Sharon Peters' Minnesota-based utility consulting firm, interviewed 33 current MMSD employees who were not whistleblowers as well as current Veolia employees. Veolia responded with its own report, carried out by a globally recognized engineering and scientific consulting firm, asserting it met its contract and environmental regulatory requirements over the last 10 years.
Timeline
March 2018: Start of the 100-month permit compliance review period.
June 2026: End of the 100-month permit compliance review period.
Sunday, November 8, 2026: Veolia released its own report.
Monday, November 9, 2026: Peters shared the audit findings with the MMSD commission.
2028: Veolia's contract ends.
Industry Landscape
Milwaukee's rebidding of its wastewater plant contract follows a broader pattern of municipalities reassessing private operators of public water and sewer infrastructure after long-term management agreements. The MMSD's selection of Jacobs Engineering over the incumbent Veolia shows how audit findings can shift competitive positioning among firms bidding for these contracts.
Milwaukee residents whose wastewater flows through MMSD's two plants will see the next plant operator take over in 2028 under a new 10-year contract. The audit's 64 recommendations point to staffing and maintenance changes that could affect how reliably the plants operate in the years ahead.
The takeaway
The audit shows that a contractor can meet its core regulatory permit obligations while still falling short on staffing and maintenance, so oversight of those operational areas matters as much as headline compliance. Municipal officials reviewing similar contracts may find the audit's recommendations a useful checklist for their own oversight.
Further reading
Explore more Milwaukee utilities coverage for context on the region's water and sewer infrastructure.
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