State Consumer Advocate files protest in MABS acquisition case
SHENANDOAH – The Pennsylvania Office of Consumer Advocate (OCA) filed a protest in the acquisition of the Municipal Authority of the Borough of Shenandoah (MABS).
FULL COVERAGE
- Aqua says MABS sale ‘will not have immediate impact on rates,’ but 45% hike possible later
- PUC ‘conditionally accepts for filing’ Aqua application to purchase MABS
- 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
Aqua Pennsylvania, of Bryn Mawr, one of the largest private water companies in the nation, signed an agreement last year with Shenandoah borough to purchase MABS for $12 Million.
“The objective of the Consumer Advocate in filing a Protest in this matter is to protect the interests of Aqua’s current customers and the MABS customers,” the office wrote in a filing with the PUC. “The Consumer Advocate will endeavor to prevent ratepayers from paying costs that are unreasonable or unduly discriminatory, or otherwise violative of the Public Utility Code.”
The OCA requested a telephonic public hearing be held within four to six weeks of final acceptance of Aqua’s application to acquire MABS.
Another concern for the OCA are proposed rate changes for both MABS and Aqua customers.
The OCA noted that Aqua intends to convert quarterly-billed MABS customers to monthly billing once the sale closes. After that, MABS customers could see a rate hike of up to 45% if a revenue deficiency is shouldered solely by MABS customers.
Such an increase would not come until Aqua’s next base rate case with the PUC, the company says.
Rates could increase for other current Aqua customers as well, as the Aqua is requesting to add $12 Million to its rate base, the total value of a utility’s assets used as a baseline for setting rates.
“The impact that the costs of the acquisition, particularly the proposed ratemaking rate base ($12 million), will have on the rates of existing and acquired customers must be determined to assess the benefits and detriments of the acquisition,” the OCA said in their petition.
Read the protest filing here
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