Press Release

PUC Approves Joint Settlement in Case Involving Aqua Pennsylvania Acquisition of Shenandoah Water System

Published on 7/13/2023

Filed under: Water and Wastewater

Approval Had Been Sought for $12 Million Acquisition of Water System Serving Approx 2,900 Customers in Schuylkill County

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a joint settlement in a case seeking Commission approval for Aqua Pennsylvania Inc. (Aqua) to acquire the assets of a water system in Schuylkill County owned by the Borough of Shenandoah and the Municipal Authority of the Borough of Shenandoah (MABS). 

The Shenandoah system provides water service to approximately 2,900 customers in the Borough of Shenandoah and parts of surrounding municipalities (West Mahonoy Township, Mahanoy Township, Butler Township and Girardville Borough) located in Schuylkill County.

The Commission voted 5-0 today to approve the joint settlement and adopt the recommended decision of PUC Administrative Law Judge Jeffrey A. Watson, as modified by today’s order, and approve Aqua’s application.

The joint settlement was supported by the PUC’s independent Bureau of Investigation and Enforcement, the Pennsylvania Office of Consumer Advocate, the Borough of Shenandoah, MABS and Aqua. The Pennsylvania Office of Small Business Advocate indicated that it does not oppose the joint settlement.

As detailed in the settlement and Commission order, the acquisition will provide Shenandoah area consumers with access to enhanced customer services. 

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.

Per the settlement, Aqua will continue to provide free water service to eight fire companies that received free service from MABS (“fire companies” collectively referring to five volunteer fire companies in the Borough, two volunteer fire companies in West Mahanoy Township and Shenandoah Ambulance) 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.

Aqua PA’s Proposed Acquisition

Aqua’s has proposed to acquire all water system assets located in the Borough of Shenandoah as well as the MABS Water Treatment Plant located in West Mahanoy Township; the Swatara Road Standpipe and the Kehly Run Tank located in West Mahanoy Township; two dams located in Union Township (Ringtown Dam No. 6 and Ringtown Dam No. 5); two dams located in West Mahanoy Township (Raven Run Dam No. 2 and Raven Run Dam No. 3); and water mains located in West Mahanoy Township, Butler Township, Girardville Borough and Mahanoy Township for a negotiated price of $12 million.

According to Aqua’s Settlement Tariff, Aqua will implement MABS’ water rate in effect at closing and these rates will remain unchanged until Aqua’s next base rate proceeding subject to the Commission’s review.  

Aqua furnishes water service to approximately 448,000 customers throughout Pennsylvania, including parts of Schuylkill County.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram,and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: A-2022-3034143

Contact:

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