PHILADELPHIA (KYW Newsradio) — Some Bucks County commissioners and the head of the county’s water and sewer provider say they think it’s time to end talks about the privatization of sewer services for around 100,000 households in Southeastern Pennsylvania.
The Bucks County Water and Sewer Authority provides services to about 500,000 people, mostly in Bucks County, but also in parts of Montgomery and Chester counties.
The authority has been researching a sale of its sewer services to Aqua Pennsylvania after it made a $1.1 billion offer. Aqua currently serves parts of Berks, Bucks, Chester, Delaware and Montgomery counties, as part of eight states where it provides services.
Bucks County Water and Sewer Authority Board Chair John Cordisco said that after their time and research, they should end discussions with Aqua about the offer.
“I have informed the BCWSA board members that I do not support moving forward with the proposed offer, and we will determine the next appropriate steps,” said Cordisco.
Bucks County Commissioner Bob Harvie says he respects the due diligence on the part of the authority, but the county should halt conversations with them.
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“I personally called the chairman of the authority over the weekend, just to let him know that I had some concerns. I really thought that it probably was a good idea for any kind of future discussions to come to an end,” Harvie said.
“They took a look, and they're continuing to look at … how this could be done. But I just think there are too many questions.”
Commissioners Diane Marseglia and Gene DiGirolamo said they agree with Harvie that talks should end.
“While the financial aspect of this deal is a reasonable alternative given the expensive infrastructure work ahead, what we heard from the public was clear, nonpartisan, and near-universal: Do not sell off the publicly-run BCWSA sewer system to a private entity. Fear of ballooning rates, as evidenced by similar takeovers around the country, and loss of a well-managed, highly-regarded public utility topped the feedback I have received,” said Marseglia.
BCWSA estimates about $250 million of repairs will be needed in the coming years. If the authority was sold, Aqua would be responsible for those repairs, and part of the $1.1 billion would be put in a fund to ease any future rate increases.
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The commissioners each say they aren’t sure who would handle that fund. They worry that without public oversight, there would be less input on what repairs are made, and when they happen.
“Harsh realities do await in the form of the aforementioned system repairs, an issue that will eventually face ratepayers,” Marseglia added. “But I believe we can find solutions to those issues without involving the sale of one of our public institutions to a private corporation, under which we’d no longer have any oversight.”
The commissioners don’t have a vote on whether the Bucks County Water and Sewer Authority is sold to Aqua Pennsylvania, but they have the authority to change the agency’s charter, and could even dissolve it.
KYW Newsradio reached out to Aqua for comment, but they did not initially respond to our request.
Bucks County Water and Sewer Authority Board Chair John Cordisco shared this statement in full:
“We appreciate the County Commissioners reviewing the proposed offer from Aqua Pennsylvania for our wastewater assets and for providing the BCWSA Board with their direction. We understand the value of getting all the facts and understanding every detail on behalf of Bucks County’s residents, especially for an acquisition valued at more than $1.1 billion. We had a fiduciary responsibility to conduct our own examination and due diligence to determine what would be the best outcome for our customers, communities and employees. We conducted a comprehensive outreach and fact gathering process and said from the beginning that no decision would be made until we obtained all necessary feedback. I commend the BCWSA staff who worked tirelessly over the last several months to examine every possible inch of the proposal and to ensure we did everything we could to meet with residents, stakeholders and our 75,000 retail wastewater customers, addressing all their questions along the way.
“We respect Commissioners Harvie and Ellis-Marseglia’s opinions and have always believed their position on the proposed sale would be vitally important to any decision we make. We were never going to be in conflict with the commissioners’ position. As such, I have informed the BCWSA board members that I do not support moving forward with the proposed offer, and we will determine the next appropriate steps. Additionally, I agree with the commissioners that harsh realities do await in the form of significant system repairs, and we will continue to work with the county to find solutions to alleviate the impact on our customers and communities we serve.”