Game changing ruling for Act 12 acquistions!

Last week, the Commonwealth Court overturned a PUC approval for East Whiteland’s sale of its sewer system to Aqua.

News coverage: Pa. court reverses PUC decision on Aqua, East Whiteland deal - WHYY

What happened?

  • During every sale, an Administrative Law Judge (ALJ) must decide if the sale is in the best interest of the public. 

  • The ALJ determined that the East Whiteland sale to Aqua was not in the public interest and recommended the sale not occur.

  • The PUC approved the sale anyway.

  • The PA Office of Consumer Advocate appealed.

  • The Commonwealth Court agreed with the ALJ and overturned the PUC approval!

Why did the ALJ say the sale wasn’t in the public’s best interest?

  • Public opposition to the sale.

  • The system was already safe and reliable.

  • The township could operate the system itself.

  • East Whiteland customers would experience a large rate increase.

  • Other Aqua customers would also experience rate increases due to the sale.

What does this have to do with Towamencin’s sale?

  • The courts are saying that the PUC cannot simply rubber stamp these sales. The buyer must prove they will provide substantial affirmative public benefits. 

  • The reasons East Whiteland’s approval was denied APPLIES 100%  TO TOWAMENCIN!

  • There is now formal recognition that these huge rate increases harm ratepayers.

  • There is now precedence of TWO sales being overturned after PUC approval (this one and Willistown).

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