Pa. American Water to acquire troubled East Dunkard Water Authority
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Plans are underway to sell the troubled East Dunkard Water Authority in southeastern Greene County to Pennsylvania American Water Company.
The authority’s board called a special meeting for 6 p.m. today where an “asset purchase agreement” is expected to be approved to begin transferring the infrastructure, staff and customers to PAWC.
Terms of the sale were not made public and East Dunkard officials did not return phone messages seeking comment.
PAWC spokesman Gary Lobaugh said the proposal that will be voted on tonight came from a “collaborative process between all parties” and that the water company thinks it will offer the “best long-term solution” to East Dunkard. He did not elaborate on who negotiated the agreement or when talks began.
“We are pleased that, by considering our offer, the East Dunkard Water Authority board members recognize the value we provide and are willing to consider entrusting us with the future ownership of their water system,” Lobaugh said. “We are really looking forward to meaningful conversations with community members about the additional benefits we can provide as their drinking water provider.”
East Dunkard has been plagued with issues in recent years with ongoing water quality problems and dozens of violation notices from the state Department of Environmental Protection. The authority last year received a nearly $2 million grant from the state through the Community Development Block Grant-CARES Act to overhaul the treatment facility and waterlines. There also has been funding for an extension line that would allow for East Dunkard to connect with Southwestern PA Water Authority in nearby Jefferson, although it was not clear if that plan will still move forward with the acquisition by PAWC.
Dunkard Township resident Clarissa Eggers said the sale is concerning to her and customers because of the uncertainty about what could happen to their already high water bills if PAWC has to make major upgrades to the waterlines, as expected.
“We’re going to be no closer to clean water than before,” Eggers said. “They’ll come in and do those upgrades eventually, but they’ll pass that cost on to the customer. And people around here can’t afford that.”
Eggers, who has been critical of the authority’s leadership over its management of the water system, said she expects a large crowd at tonight’s meeting to voice their concerns about the deal and what it could mean for the residents.
“I guess that will be our final thing to get our voices heard,” she said of the meeting.
However, it could take more than six months for the state Public Utility Commission to review and approve the deal. PAWC will first have to apply to the PUC to acquire EDWA and then illustrate it would be in the public’s interest to serve the nearly 1,600 customers in the system.
Tonight’s meeting also comes two days after an administrative law judge with the PUC recommended that a $225,000 civil penalty against East Dunkard for providing water to four neighboring communities without proper certifications should be approved. It could be several more months before the five-member PUC board votes on whether to accept the settlement, which was agreed upon last year between the water authority and the PUC’s Bureau of Investigation and Enforcement, which is the investigative arm of the state agency.
When the joint petition for settlement was announced last September, East Dunkard began charging customers a monthly $16.07 surcharge over 10 payment periods.
Eggers filed a formal complaint against EDWA, while fellow Dunkard Township resident Dave Vukmanic contacted the state Consumer Advocate within the Attorney General’s office about the surcharge. He was notified in November that the proposed civil penalty should be assessed to the authority and not to its customers. The surcharge was later removed and customers were refunded, although it’s unclear how the authority will pay the $225,000 penalty by the Sept. 1 deadline if the PUC approves the settlement.
“There’s just a whole bunch of stuff that would affect us,” Vukmanic said. “They can’t afford to pay the fine. They can’t afford to fix the lines. This just doesn’t add up.”
The special meeting will be held at the authority’s office at 2790 S. Eighty-Eight Road near Dilliner.
East Dunkard currently services customers in Dunkard Township and portions of Cumberland, Greene, Monongahela, Perry and Whiteley townships.