Summit Township opposes BASA sale
SUMMIT TWP — Supervisors authorized their solicitor on Wednesday, April 19, 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.
BASA, however, contended in a statement Wednesday that the authority will refute the arguments by Summit and Center townships before the PUC.
Summit supervisors approved a memorandum with Center Township, and the two municipalities will enter into the objection together and split the legal costs.
A news release from both townships said they objected to the sale because neither has representation on the BASA board of directors even though customers live in the municipality. Additionally, the sale could put financial strain on Summit and the other affected townships.
The statement from BASA said the overwhelming opinion found in public forums regarding the sale was that it was the right move for residents, the shared regional economy and the environment.
“The City of Butler and Butler Township were the sole incorporators of BASA and original investors in the wastewater system,” the statement said. “This is about equitable distribution; every single customer in BASA’s jurisdiction will receive the same benefits, including access to a proposed pilot lateral program and minimum one-year rate freeze.”
BASA serves nearly 15,000 customers in 32.5 square miles, which includes Butler, Butler Township, Center Township, East Butler, parts of Connoquenessing, Summit and Oakland townships, and a small portion of Penn Township.
The sale of the sewer authority’s assets to Pennsylvania American Water is being reviewed by the PUC.
Regarding the legal fees, Center Township will pay 80% with 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 public relations services from O’Brien Communications, which charges $150 per hour.
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.”
Gallagher said the townships will file the objection in May, but it may not be read until June.
Supervisor Chairman Willie Adams said he has “a lot of issues” with the BASA sale.