Center Township to object to BASA sale
CENTER TWP — Supervisors have authorized their solicitor to file an objection with the Pennsylvania Public Utility Commission over plans to sell the Butler Area Sewer Authority to Pennsylvania American Water for $231 million.
At a meeting Wednesday, April 12, supervisors discussed their objections to the sale on the grounds that Center Township doesn’t have any representation on the BASA board of directors even though many customers live in the municipality. Additionally, the sale could put financial strain on Center and the other affected townships.
Supervisor Don Pringle said the water bills will likely increase because of the sale. Additionally, he said public entities like the school district or private businesses may also raise rates because of the increased price to their own water services.
"This is not good for Center Township,” Pringle said. “Center Township residents, we don’t get any benefit from any of the sale money. You know what we get? We get increased prices.”
BASA serves nearly 15,000 customers in 32.5 square miles, which includes Butler, Butler Township, Center, East Butler, parts of Connoquenessing, Summit and Oakland townships, and a small portion of Penn Township.
Center and Summit townships sent a joint news release Tuesday, April 11, saying both boards of supervisors planned to object to the BASA sale.
The sale of the sewer authority’s assets to Pennsylvania American Water is being reviewed by the Pennsylvania Public Utility Commission.
Michael Gallagher, solicitor for both townships, said their objection to the sale could lead to action unfolding in court.
“The PUC will take that into account; it may have a hearing and they will find the facts of the case, and from there a decision will be made,” Gallagher said. “It's different than public comment; the objection would go through a court process.”
Center supervisors also voted unanimously Wednesday to enter into a memorandum with Summit to pursue legal action jointly.
Both townships will pay for the legal fees relating to the potential litigation, with Center paying 80% and Summit paying 20% — a figure based on each township’s number of equivalent dwelling units. An equivalent dwelling unit, or EDU , is a measure of the service needed to serve a single family home. Some businesses will have more than one EDU.
The townships also will split the costs at the same ratio for news releases created by O’Brien Communications, which charges $150 per hour.
Gallagher said the Summit supervisors will have similar motions on their next agenda, and they are scheduled to meet at 6:45 p.m. Wednesday, April 19.
Pringle said the supervisors are all in agreement with objecting to the BASA sale.
“This wasn’t a knee-jerk reaction,” Pringle said. “We are giving up a nonprofit to a for-profit entity. We’re giving it up.”
