Aqua officially takes over MABS system
SHENANDOAH – It’s official. As of midnight Monday, Shenandoah’s water system is now in the hands of Aqua Pennsylvania.
Aqua, one of the nation’s largest private water companies, agreed in 2020 to purchase the Municipal Authority of the Borough of Shenandoah (MABS) water system for $12 Million, and the sale had been wading through regulatory red tape since then.
The sale received regulatory approval earlier this month, which borough officials said was the last obstacle prior to closing the sale.
Borough Solicitor James Amato told the Sentinel Wednesday that MABS employees are currently working through Aqua’s orientation process.
He said MABS, as an authority, still exists as some administrative details and billing details are still being worked out. He also said that several easements are still being resolved.
Once all of that is resolved, the authority will be dissolved.
Along with closing the sale, the borough received the $12 Million payment, of which about $5.3 Million went to pay off a MABS loan immediately.
Pending costs related to the sale, the borough will have “north of $6 Million,” which is in an account separate from accounts currently used for the borough’s operations.
Borough Manager Tony Sajone said the borough still has to put together a plan for what to do with the funds, which has to include funding the pension plan for retired MABS employees.
The water system, which serves 3,000 customers in Shenandoah, its suburbs and patches in West Mahanoy Township, and the Connerton and Rappahannock sections of Girardville, will receive $23 Million in infrastructure investments over the next 10 years, Aqua’s parent company, Essential Utilities, said in a media release Thursday.
Some of the infrastructure dates back to the 1800s, when Shenandoah had multiple competing water companies.
$10 Million will be used to update water mains, and other upgrades include increasing reliability and reducing water loss, improving water quality, and improving operational efficiency and environmental performance.
The system loses 60 percent of water due to leakage.
“Our customers deserve a reliable system with consistently high water quality,” said James Rusin, MABS Chairman. “Getting there requires the expertise, technology resources, and operational skill that Aqua brings. It was equally important to choose someone who is committed to be part of our community.”
“We have a long history of municipal partnerships, and we are looking forward to partnering with the leadership and customers of MABS,” said Essential Chairman and CEO Christopher Franklin. “We are proud of our track record of making appropriate capital and operating changes to ensure that all of our customers receive clean, safe, reliable water. And we’re delighted to increase our commitment to Schuylkill County.”
MABS customers should receive a welcome letter from Aqua soon.
Customers seeking to continue making their water payments in person can continue to do so at Western Union locations. Aqua says payments can be made at Rite Aid, Turkey Hill, and Redner’s.
In the coming weeks, Aqua plans to begin inspecting fire hydrants as Aqua gains information about their operability.
Hydrants that are inoperable will be bagged until they are replaced.
Customers will also soon receive a separate notice requesting access to customer’s properties to replace or install water meters. Customers should request employee identification before letting anyone enter their property.
Rates are expected to remain the same through 2025, when Aqua will appear before the Pennsylvania Public Utilities Commission for its next rate case.
Until that point, Shenandoah area fire companies will continue to receive free water service, as they had under MABS ownership.
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