Butler Area Sewer Authority treatment plant in Butler on October 11, 2022

Butler City Council is in a “holding pattern” as the sale of the Butler Area Sewer Authority to Pennsylvania American Water is evaluated for approval by the state.

Butler Mayor Bob Dandoy said at a meeting Thursday, Aug. 10, that the sale could be approved by the Pennsylvania Public Utility Commission in September, with a final closing date of the sale possible in November.

“We’re optimistic,” Dandoy said. “It has gone through the PUC, and we’re waiting for the judge. There was a lot of work at the end there.”

The council will hold a meeting at 11:30 a.m. Friday to vote on a settlement agreement for the sale.

On Wednesday, Butler Township approved a settlement agreement that includes BASA, the water company, the PUC, the Pennsylvania Office of Consumer Advocate, the Pennsylvania Office of Small Business Advocate and the Pennsylvania Bureau of Investigation and Enforcement.

Butler has three members on the BASA board, Butler Township has two members on the board, and Butler City Council and the Butler Township commissioners have followed identical procedures over the past year to finalize the sale.

The sale of the sewer authority’s assets to Pennsylvania American Water for $231.5 million is being reviewed by the PUC. If the sale is approved, the proceeds that remain following the payment of debts and other liabilities will be split evenly between Butler and Butler Township.

At the meeting Thursday, council voted to adopt Pennsylvania American Water’s Act 537 Plan, in preparation for the company’s acquisition of BASA’s assets. BASA executive director Duane McKee said in previous meetings that the water company worked closely with BASA officials to adopt a plan similar to the one already in place.