PUC ‘conditionally accepts for filing’ Aqua application to purchase MABS
SHENANDOAH – The sale of the Municipal Authority of the Borough of Shenandoah has taken another step towards completion.
FULL COVERAGE
- Aqua says MABS sale ‘will not have immediate impact on rates,’ but 45% hike possible later
- State Consumer Advocate files protest in MABS acquisition case
- Borough to keep wind farm land, breached dams in MABS sale; will receive cell tower revenue for 10 years
- Aqua plans to join MABS system with existing Roaring Creek system
The Pennsylvania Public Utilities Commission (PUC) has “conditionally accepted for filing” Aqua Pennsylvania’s application to acquire the water system, which serves about 2,900 customers in the borough, West Mahanoy Township, and parts of Butler Township and Girardville.
Aqua filed the application on Oct. 6.
The PUC notified Aqua on Dec. 9 of the conditional acceptance and required the Bryn Mawr-based company to serve copies of the application to every municipality served by MABS as well as the Department of Environmental Protection, the Officer of Consumer Advocate, and the Office of Small Business Advocate.
Aqua is also required to provide individualized notice of the acquisition to all potentially affected customers of both MABS and Aqua.
Aqua, one of the largest private water and wastewater companies in the nation, signed an agreement last year with the borough to purchase MABS for $12 Million, following two public hearings on the matter.
Through its Roaring Creek Division, Aqua provides water service to Girardville, Mount Carmel, Aristes, and Shamokin with reservoirs and a water treatment plant near Elysburg. Statewide, Aqua serves about 448,000 customers across 32 counties.
“This acquisition will not immediately, but may in the future, affect water bills of Aqua customers, including the new Shenandoah water customers,” Aqua wrote in a notice to MABS customers. “Your rates will not change at the time we close this transaction and can only change with when approved by the PUC following an Aqua rate case that includes the Shenandoah system. Aqua estimates that the rates of the average customer could increase at that time, based on our preliminary analysis.”
According to a notice Aqua filed with the PUC, MABS rates could go up by about 16% if costs are shared among other Aqua customers, or 45% if not.
That would mean an increase of either $6.91 or $19.50a month for the average residential customer using 2,790 gallons a month.
The PUC is expected to make a final decision on Aqua’s application around July 13, 2023.
The PUC is also accepting public input either for or against the acquisition. Letters can be sent to the PUC at: Pennsylvania Public Utility Commission, PO Box 3265, Harrisburg, PA, 17105-3265.
The public can also attend or be a witness at a PUC public input hearing, if the PUC opens an investigation and there is enough interest in the case.
Additionally, the public can file a protest or petition to intervene on or before Feb. 27, 2023. Filings must be made with the Secretary of the Pennsylvania Public Utility Commision at PO Box 3265, Harrisburg, PA, 17105-3265, with a copy served on Aqua’s counsel at Saul Ewing Arnstein and Lehr, LLP, Attn; Courtney L. Schultz, 1500 Market Street, Center Square West, 38th Floor, Philadelphia, PA, 19102.
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