Court decision could set standard for Pa. municipalities that want to privatize water and sewer systems

Sewer output
Photo credit Getty Images

PHILADELPHIA (KYW Newsradio) — A recent state court ruling that overturned the approval of the privatization of a Chester County municipal sewer system could bring changes to how the Pennsylvania Public Utility Commission (PUC) handles applications going forward.

The Pennsylvania Commonwealth Court ruling challenged PUC for approving Aqua Pennsylvania’s acquisition of East Whiteland Township’s sewer system.

“This is an important case,” said Pennsylvania Consumer Advocate Patrick Cicero, “because it kind of helps provide the clarity that’s necessary about how and when and under what circumstances the commission should be approving these applications.”

Cicero said his office is not arguing privatization is good or bad, or that only troubled municipal systems can be privatized. Instead, he said harms — like a significant rate increase — must be clearly laid out in advance, and PUC must weigh those harms against the proposed benefits.

“If an acquisition results in tangible harm to consumers or the public in some way, and on net, there’s not substantial affirmative public benefit, then Public Utility Commission cannot approve that transaction,” he said.

But the East Whiteland Board of Supervisors says it “strongly disagree[s] with the decision and believe[s] the court ignored many benefits to residents and taxpayers.” It says public benefits, like a new police station and a park, are now on hold indefinitely.

Featured Image Photo Credit: Getty Images