Press Release

PUC Orders Acquisition of Clean Treatment Sewage Co. by Pennsylvania American Water Co.

Published on 5/24/2012

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today ordered the acquisition of Clean Treatment Sewage Co. (CTSC) by Pennsylvania American Water Co. (PAWC)

The Commission voted 5-0 to direct PAWC to acquire CTSC through the eminent domain process due to the inability of the two companies to agree on an acquisition price.  Chairman Robert F. Powelson issued a statement. 

PAWC will submit a plan for improvements to the Commission.  Following approval of the plan, PAWC will acquire CTSC and its 373 usage residential customers in Marcel Lake Estates, Delaware Township, Pike County, as well as its 367 availability customers who own lots in the Marcel Lake Estates development and require wastewater service in order to build on their property.  The PUC has directed PAWC to include in its plan information on how the company plans to recover the costs of improvements to bring the CTSC wastewater system CTSC into compliance, in addition to other pertinent financial information, as well as whether the company plans to switch the Marcel Lake Estates customers from flat rates to metered rates.

Also as part of the acquisition, the Commission directed CTSC to refund, without interest, availability charges actually paid by customers between March 2005, when this service was not available, and May 2009 when the Commission ordered CTSC to cease billing these customers.  The Commission further directed that any refunds be disbursed from the proceeds, if any, of the sale of the wastewater system.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.  For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. I-2009-2109324

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov