Office of Consumer Advocate is against free service to Shenandoah area fire companies
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL FILE - The Defender firehouse in Turkey Run is seen on Nov. 3, 2020. Firehouses in the Shenandoah Fire Department and the MABS-served portion of West Mahanoy Township currently receive free water, an arrangement that would eventually end under Aqua Pennsylvania's ownership.
SHENANDOAH – In a statement attached to a proposed settlement agreement, the state Office of Consumer Advocate said it does not support Aqua providing free water service to our volunteer fire companies.
The OCA is a state agency intended to represent the interests of Pennsylvania utility consumers before the Pennsylvania Public Utility Commission (PUC), federal regulatory agencies, and state and federal courts, according to its website.
As the proposed sale of the Municipal Authority of the Borough of Shenandoah (MABS) to Aqua Pennsylvania is considered by regulators, the OCA has been involved in the proceedings.
In a proposed settlement agreement that asks for the approval of the sale application, the OCA said it does not support Aqua adopting MABS’ practice of providing free service to fire companies until the next rate case.
Aqua is requesting approval to do so until it brings MABS rates in line with the rest of its system. At that point, such organizations would be billed.
Currently, MABS provides free service to Shenandoah’s five volunteer fire companies, two volunteer fire companies in West Mahanoy Township, and the Shenandoah Community Ambulance Association.
The OCA alleges that free service is not permitted under the Public Utility Code and “long-standing precedent.”
The Shenandoah area is served by all-volunteer fire companies and a combination volunteer/paid ambulance service. The local fire companies have been busy in 2023, with three arson fires, an accidental house fire on West Coal Street, and the Dollar General blaze.
The OCA claims that if free service is permitted, “it would have a cumulative impact on existing customers,” and says “existing customers and the other acquired customers will not benefit from the Fire Companies contributing revenues through the [Distribution System Improvement Charge] during that period.”
They claim that Aqua’s plan to bill fire companies at the next rate case will “mitigate harm to Aqua’s other ratepayers.”
Locally, the Hazleton City Authority and the Mahanoy Township Authority both told the Sentinel that they charge fire companies in their service territories for water service. The Schuylkill County Municipal Authority said they only charge each fire company in their service area the minimum charge of $19.65 per month.
The OCA also objected to the agreement which would see the borough retain some revenue from the cell tower lease on the Turkey Run water tower, claiming “Aqua customers will pay the costs for acquiring, operating, maintaining, and replacing assets that generate the lease revenue.”
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