PUC: Aqua will provide free water service to fire companies until next rate case
SHENANDOAH – The Pennsylvania Public Utilities Commission says Thursday’s approval of the sale of Shenandoah’s water authority will allow fire companies to receive free water temporarily.
This comes despite objections by the Office of Consumer Advocate against Shenandoah’s all-volunteer fire department receiving free water, alleging “harm” to customers, and despite a recommendation by the administrative law judge presiding over the case to disapprove such a provision.
Thursday, the PUC unanimously approved the sale of the Municipal Authority of the Borough of Shenandoah (MABS) to Aqua Pennsylvania for $12 Million. Aqua, with over 400,000 customers and based in Bryn Mawr, is one of the largest private water companies in the country.
MABS serves 2,900 customers in Shenandoah, the northern half of West Mahanoy Township, and part of Butler Township and Girardville.
The borough approved the sale of MABS to Aqua for $12 Million in 2020. Once MABS debt is paid off, the borough will receive around half that amount.
Thursday’s regulatory approval came via a joint settlement between the borough, Aqua, the PUC Bureau of Investigation and Enforcement, and the Office of Consumer Advocate and paves the way toward the closing of the sale.
Per the settlement, Aqua will continue to provide free water service to eight fire companies that received free service from MABS until Aqua’s next base rate proceeding before the PUC – noting that at the time of Aqua’s next base rate case before the PUC, Aqua will propose to charge rates for water service to all entities in the Shenandoah territory.
MABS currently provides free service to the five fire companies in the Shenandoah Fire Department, along with the William Penn Fire Co., Heights Fire Co., and Shenandoah Ambulance.
The Office of Consumer Advocate had opposed offering free water service multiple times throughout the regulatory approval process.
The PUC also said Aqua will provide information about its customer assistance programs – in both English and Spanish – as part of their “welcome letter” to Shenandoah area customers and will work with community-based organizations to provide information about Aqua’s assistance program and enroll eligible consumers.
In addition to existing commitments, Aqua agreed to contribute $45,000 to the Company’s Hardship Grant program to further assist Aqua customers.
Upon closing of the system sale, the Shenandoah system will be integrated into Aqua’s customer-owned lead service line replacement program, and Aqua will explore low cost or no cost financing for lead service line replacement in the Shenandoah territory.
Aqua will also review the high level of unaccounted for water in the Shenandoah system and submit an audit report for the system using guidelines from the American Water Works Association – providing copies of that audit report to the PUC and the Office of Consumer Advocate and Small Business Advocate.
Aqua has noted plans to invest $23 million in the Shenandoah system for main replacements and other system needs to minimize future water loss and improve service.
The settlement requires Aqua to install water meters at the four fire companies in the Borough’s service territory that do not currently have meters, within 60 days of the closing – and directs Aqua to file an amended Long Term Infrastructure Improvement Plan, to include eligible Shenandoah assets in that plan.
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