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Long debate ends with sale of BASA

Like it or not, the Butler Area Sewer Authority has officially been sold to Pennsylvania American Water.

A representative of the water company first officially notified the authority’s board in April 2021 that the company was potentially interested in buying the sewer authority at the intersection of Route 8 and Litman Road in Butler Township.

The authority was jointly owned by Butler Township and the city of Butler, who will share the proceeds from the sale.

Many customers decried the sale, fearing soaring rates.

Opponents of the sale said the city and township would receive a windfall in the sale, but the authority's customers would see their bills increase.

Penn American officials said the sale would be an excellent thing for customers because the authority’s aging plant, equipment and lines would finally be updated and brought up to modern standards.

Landlords in Butler attended authority meetings to complain that a rate increase on the scale seen in other Pennsylvania American system purchases would cause significant hardship for themselves and their tenants.

To assuage customer fears, Pennsylvania American agreed not to raise rates for one year.

Officials from municipalities with Pennsylvania American customers, like Center and Summit townships, East Butler and others, complained that they would have no stake in the sale. Center Township even brought a lawsuit against the sale, but it was denied in September by Commonwealth Court.

An administrative law judge issued a recommendation in September that Butler Area Sewer Authority not be sold to Pennsylvania American Water.

But the headline splashed across the mast head of Wednesday’s Butler Eagle confirms that despite all this, the sale was complete, and Butler and Butler Township will share $230 million in sale proceeds.

The Butler Eagle understands the trepidation customers and municipalities had about selling the authority to Pennsylvania American, but the fact is that the authority shied away from increasing rates over the years that would have covered much-needed repairs and replacements.

At the point when Pennsylvania American expressed interest in buying it, the authority board was unable to take on the debt required to make all necessary repairs and upgrades, which would have necessitated a sharp rate increase to pay on that debt.

There was no feasible way to retain low rates while the treatment plant limped along as best it could without upgrades. That option, most would agree, would spell eventual disaster.

So customers should embrace Pennsylvania American Water as their new service provider, and rejoice in the upgrades that will no doubt come in the near future, even though their complaints are now down the drain.

PG

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