Sewer rate hike expected for BASA customers following acquisition
The Butler Area Sewer Authority approved a rate hike for October in anticipation of the sale of the system to Pennsylvania American Water.
At the monthly board meeting Tuesday morning, June 13, the five voting members of BASA unanimously voted to raise the rate for sewer services by $2.50 per EDU (equivalent dwelling unit) per month, which is a required condition of the acquisition. The rate increase will be effective Oct. 1.
According to BASA executive director Duane McKee, the October date was chosen for logistical reasons.
“We’ve determined that Oct. 1 would be the ideal time to do that,” McKee said. “That’s the start of the quarter. It simplifies a number of things, mostly billing in that last quarter, because we bill customers quarterly.”
The Butler Area Sewer Authority approved a rate hike for October in anticipation of the sale of the system to Pennsylvania American Water.
At the monthly board meeting Tuesday morning, June 13, the five voting members of BASA unanimously voted to raise the rate for sewer services by $2.50 per EDU (equivalent dwelling unit) per month, which is a required condition of the acquisition. The rate increase will be effective Oct. 1.
According to BASA executive director Duane McKee, the October date was chosen for logistical reasons.
“We’ve determined that Oct. 1 would be the ideal time to do that,” McKee said. “That’s the start of the quarter. It simplifies a number of things, mostly billing in that last quarter, because we bill customers quarterly.”
McKee added that if there were any unforeseen difficulties with negotiations that would delay closing the deal with Pennsylvania American Water, the rate increase potentially could be delayed. The Pennsylvania Public Utility Commission is reviewing the terms of the acquisition, which would be worth $231 million.
“We’ll revisit the rate increase if it doesn’t close at the time we expect, and the board will consider moving that rate increase down to a different date,” McKee said.
At the moment, BASA serves nearly 15,000 customers over an area of 32.5 square miles.
Barring any last-minute hiccups, the acquisition is expected to close by November 2023. However, BASA has prepared a draft budget for 2023-24 in the unexpected event that complications with the acquisition will force BASA to operate for the entire year as an independent entity.
The planned acquisition is being protested by Center and Summit townships, which are also served by the system, and the Pennsylvania Office of Consumer Advocate.
