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).