In a notice published February 1, 2024, the Pennsylvania Public Utility Commission is seeking input and comment on “several proposals geared toward increasing public awareness and establishing greater procedural consistency when evaluating the acquisition and valuation of municipal or authority-owned water and wastewater systems under Section 1329 of the Public Utility Code.”

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This is a good sign that the PUC has begun to recognize the negative impact of Act 12 and its deficiencies in handling these cases. Any resulting action will not impact the sale of the New Garden Township sewer system, but it could help limit future rate increases in general, as well as help in efforts to save Chester Water Authority.

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The proposed changes are intended to increase transparency and encourage public input during the sale process. The changes also address the valuation process used in determining a “fair market” value of the utility being sold.

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To read the full request go to PUC Seeks to Enhance Public Notification and Application Review Procedures for Acquisitions of Municipal or Authority-Owned Water & Wastewater Systems | PA PUC.

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The proposed changes are a good step in the right direction, but do not go far enough, particularly in recognizing that the sale price has become the driving force in these sales. Local municipalities are too often captivated by the large sum of money offered. This becomes the driving force, and a story is created to justification sale.

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You can submit any comments directly to the PUC. As an alternative you can add your name to a sign-on letter we will submit. By signing the letter you show your support and demonstrate the broad interest in these issues.