Gawrylik files objection to proposed MABS sale settlement
SHENANDOAH – The lone official protestant in the proposed sale of the Municipal Authority of the Borough of Shenandoah has filed an objection to a proposed settlement in the matter.
Aqua Pennsylvania is seeking regulatory permission to purchase MABS, the water company for Shenandoah, the northern half of West Mahanoy Township, Connerton, Rappahannock, and part of Girardville for $12.5 Million.
The Office of Consumer Advocate and the Bureau of Investigation and Enforcement, along with Aqua, the borough, and MABS, filed the proposed settlement earlier this month.
The Office of Small Business Advocate, which has also been involved in the sale proceedings, is not a party to the settlement.
I&E described the settlement terms as being “in the public interest and represent[ing] a fair and just balance of the interests] of all parties to the settlement.
Donna Gawrylik’s objection, filed Wednesday, contests that claim. The filing, submitted by Maria Casey, who is representing Gawrylik, notes that, for the PUC to approve the sale, they are required by law “to find affirmatively that the public will benefit from the merger/sale.”
“Here, the Borough of Shenandoah residents will not benefit as the Water Authority is fully functioning and providing water at reasonable rates to the Borough residents,” the objection states, adding that rates could be hiked as much as 44.87%. “As the majority of Shenandoah residents are elderly and on a fixed income, this increase would be very deleterious to them.”
The objection also alleges that borough residents were not afforded due process, in that the sale was not placed on a referendum, as permitted by the Pennsylvania Election Code, nor did the borough accept a petition to stay the sale.
Gawrylik claims the borough had failed to abide by the Election Code and the Third Class City Code, though Shenandoah is not, and has never been, a city.
It was also noted that the water system is financially sound, according to the proposed settlement agreement.
Gawrylik once again asked the PUC to either deny the sale, or place the sale on the ballot as a referendum.
In the proposed settlement, the petitioners are asking Administrative Law Judge Jeffrey A. Watson to recommend approval of the sale.
Part of the agreement would require that Aqua send out a welcome letter within 30 days of closing, outlining its customer assistance programs and the lead service line replacement program, as well as a description of low-income programs. The agreement would also require the letter to be sent in both English and Spanish.
Aqua will also include information “about in-person bill payment options” in the area in the welcome letter.
The agreement would also see Shenandoah borough paying for any missing easements or property rights, either outright or via an escrow account if the missing easements are not obtained by closing.
The I&E claims this measure, which would be paid by a municipality which already is not benefiting from nearly half of the $12 Million purchase price, protects the public interest. Nearly half of the purchase price will go towards paying MABS debt.
While the parties claim the sale is in the public interest, well over a dozen people have expressed opposition, including 11 at a hearing in March. At least eight oppositions have been received by the Public Utilities Commission as well, according to online records. The full text of those oppositions is not publicly available online.
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