Press Release

PUC: City of Lebanon Must Obtain PUC Approval Before Acquiring the City Authority Assets

Published on 4/6/2006

Filed under: Water and Wastewater

HARRISBURG – At today’s public meeting, the Pennsylvania Public Utility Commission (PUC) said the City of Lebanon must obtain Commission approval before purchasing the assets of City of Lebanon Water Authority.

 “It is clear on the face of the Public Utility Code that the City must obtain a certificate of public convenience prior to acquiring the physical assets and facilities of the water system by which it intends to provide extraterritorial service,” stated Commissioner Terrance J. Fitzpatrick in a motion, which was approved by the Commission 5-0.

The motion also stated that the City of Lebanon should have the option of amending its application to allow the proceeding to move forward. The matter is now returned to the PUC’s Office of Administrative Law Judge (ALJ) for further proceedings.  A prehearing conference is scheduled for April 13.  At the prehearing conference the parties to the case will establish a discovery and litigation schedule and the need for a public input hearing will be examined.

On Dec. 30, 2005, the City of Lebanon filed an application for a certificate of public convenience to begin serving water customers outside its municipal boundaries.  The application was protested by Cleona Borough, Cornwall Borough Municipal Authority, Fredericksburg Sewer and Water Authority, North Lebanon Township, West Cornwall Township, Jonestown Borough, Union Township, Annville Township and Swatara Township.  The Office of Consumer Advocate also became a party in the proceeding.

Currently, water service is provided by the City of Lebanon Water Authority, both within the city and in a number of surrounding municipalities.  The PUC does not regulate municipal authorities. The application stems from an effort by the City to dissolve the Authority and to provide water itself.

The question raised was whether PUC approval is required when a municipality acquires a plant, equipment or other facilities from a municipal authority it created when serving customers beyond its corporate limits, or is such approval only required prior to the beginning of rendering the service beyond its corporate limits.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. A-220010 

Contact:

• Cyndi Page
  Sr. Communications Specialist
  717-214-5434
  cypage@pa.gov