Butler Area Sewer Authority plans for dissolution post-merger
The Butler Area Sewer Authority is making plans for its eventual dissolution and absorption into Pennsylvania American Water.
At its monthly meeting Tuesday morning, July 11, the authority’s board voted to amend its articles of incorporation to acknowledge that BASA is winding down its operations as an independent entity.
If Pennsylvania American Water succeeds in its $231 million buyout, all BASA property and personnel will be transferred to the new controlling entity. The BASA headquarters on Litman Road will remain open and staffed after the acquisition is finalized, but will no longer serve as an in-person customer service and payment center.
“The authority will still exist as an entity, and there's a number of steps they need to take over the following months to dissolve itself, and that resolution was just one piece of the puzzle,” Duane McKee, BASA executive director, said.
In anticipation of the upcoming acquisition, BASA had last month voted to raise the rate for sewer services by $2.50 per EDU (equivalent dwelling unit) per month in the service area.
In case the merger runs into unexpected roadblocks, BASA has drafted an operating budget for the 2023-24 fiscal year, which also was approved as final at Tuesday’s meeting. This budget will be used if BASA is forced to continue as an independent entity longer than anticipated.
The merger is predicated on the approval of the Pennsylvania Public Utility Commission, which is reviewing the terms of the acquisition. McKee speculates that the merger could be finalized by November, assuming that there are no hiccups.
“The PUC is still evaluating the application, and that’s where we stand,” McKee said. “It’s been awfully quiet.”
However, the planned acquisition is being protested by Center and Summit townships, which also are served by the system, as well as the Pennsylvania Office of Consumer Advocate.
