Customers’ water bills could go down
DUNBAR TWP. – Water rates for customers of the Redstone Water Co. could go down if the North Fayette County Municipal Authority inks a deal to purchase the plant. Bob Softcheck, authority manager, said officials from both parties have been discussing the pending sale that would result in a purchase price of roughly $500,000 financed through a five-year loan.
“We would borrow that money then the money we generate in revenues would pay it off,” said Softcheck.
According to Softcheck, the sale would involve 600 customers while North Fayette currently sells bulk water to Redstone, which in return, passes that rate on at a higher price.
“When you get an individual account the price goes up,” said Softcheck.
Softcheck said Redstone currently pays $1.80 for every 1,000 gallons of water from North Fayette while its customers pay $3.00 per 1,000 gallons.
Softcheck added that price also includes meter readings and other related costs.
If the sale goes through, Softcheck said he anticipates water rates would go down.
Softcheck noted that Pennsylvania American Water Co. also expressed an interest in purchasing Redstone that, he said, would have most likely resulted in an even higher rate for water consumption if that transaction happened.
Aside from purchasing Redstone, North Fayette also presented a letter of interest to acquire Masontown’s water plant after the Department of Environmental Protection found it in violation of numerous guidelines.
The violations were also noted to possibly result in major fines and closing the treatment facility if the necessary steps weren’t taken to correct them.
The borough’s engineer further claimed that one citation the DEP threatened to issue included a $35,000 fine stemming from 10 years of accumulated problems.
Softcheck said North Fayette hasn’t received a response from Masontown regarding their interest to purchase the treatment facility and is still reviewing the feasibility of such an agreement.