OCA, Bureau of Investigation and Enforcement seek settlement in MABS sale

Settlement would require borough to pay for any missing easements

SHENANDOAH – The Office of Consumer Advocate and the Bureau of Investigation and Enforcement are seeking a settlement in the proposed sale of Shenandoah’s water authority.

The proposed settlement, filed Tuesday with the Public Utilities Commission, seeks the approval of the sale, saying it is “in the public interest.”

Aqua Pennsylvania is seeking regulatory permission to purchase the Municipal Authority of the Borough of Shenandoah for $12.5 Million.

The proposed settlement is between Aqua, the OCA, I&E, the borough, and MABS.

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.

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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