PUBLIC UTILITY COMMISSION
Harrisburg, PA. 17105-3265
Public Meeting held May 11, 2000
Commissioners Present:
John M. Quain, Chairman
Robert K. Bloom, Vice Chairman
Nora Mead Brownell
Aaron Wilson, Jr.
Terrance J. Fitzpatrick
Amended Application of Russell Hill Water Company, Inc. for approval of the abandonment or discontinuance of water service to the public in the Commonwealth of Pennsylvania. Water service will be taken over by the Westgate Water and Sewer Municipal Authority. / Docket Number:
A-211295F2000
ORDER
BY THE COMMISSION:
By the Application filed on January 13, 2000, Russell Hill Water Company, Inc, Russell Hill, seeks approval of the abandonment or discontinuance of water service to the public in Washington Township, Wyoming County. Service to this same territory will be provided by Westgate Water and Sewer Municipal Authority, Authority. Russell Hill simultaneously filed an Application with this Commission to abandon the wastewater facility serving this same area.
Russell Hill was issued a Certificate of Public Convenience on May 26, 1969 and June 21, 1979. The latter Certificate was issued following approval of Russell Hill’s sale of stock to Mr. and Mrs. Charles Blaisure. Russell Hill currently provides water services to 45 unmetered residential customers in the Westgate Development, Washington Township, Wyoming County.
Russell Hill is currently in a state of financial hardship and has requested that the Commission waives the filing fee for this Application and also waives outstanding assessments, which total $629.00 for the water division and $769.00 for the wastewater division. Russell Hill agreed to sell the water and wastewater facility for $1.00 to the Westgate Water and Sewer Municipal Authority.
Proofs of service and publication were submitted by Russell Hill. No complaints or protests were filed.
The Authority is a municipal authority organized and existing under the Pennsylvania Municipal Authorities Act of 1945 having filed articles of incorporation with the Department of State on March 8, 1999, formed to acquire the water and wastewater systems.
As of November 11, 1999, the Authority’s staff is operating the water system with permission granted from Russell Hill. All liability and responsibility for service continues to be endured by Russell Hill until the property and assets are officially transferred to the Authority. The closing date between the Authority and Russell Hill is expected to be on July 15, 2000.
The transfer of ownership of Russell Hill to the Authority will have no initial effect on the quality of, or rates for, service provided to the customers. However, long term effects of new ownership will benefit customers of Russell Hill. Russell Hill is unable to finance necessary repairs to the water system. The Authority will make necessary repairs and will be able to make application for financial assistance, if needed. The Authority will be operated by local residents who have a vested interest in the quality of service delivered by this system and will make necessary improvements to come into compliance with Department of Environmental Protection, DEP, and the federal Environmental Protection Agency, EPA. Currently, the average residential customer pays $144.00 per year for water service.
The purchase price, agreed to in the Acquisition Agreement and Plan of Asset Transfer dated November 11, 1999 and attached to and made part of this Application, is $1.00 for both the water and wastewater facilities. Terms and assets involved in the transfer are specifically detailed in the Acquisition Agreement and Plan of Asset Transfer. The Commission, on April 24, 2000, received an Addendum to the Application, signed by both parties. This Addendum includes a summary of the Authority’s future responsibilities to DEP, statements acknowledging the discharge of federal and state tax liens, clarification of details pertaining to the transfer of DEP and EPA permits, and a statement changing the closing date to July 15, 2000.
Upon full consideration of all matters of record, we find that approval of this Application is necessary and proper for the service, accommodation, and convenience of the public; THEREFORE,
IT IS ORDERED:
1. That the Amended Application of Russell Hill Water Company, Inc. is hereby approved.
2. That the Commission waive all outstanding assessments due from Russell Hill Water Company, Inc.
3. That the Commission waive the filing fee associated with this Application.
4. That Westgate Water and Sewer Municipal Authority provide verification to the Secretary of this Commission of the successful transfer of all Department of Environmental Protection and Environmental Protection Agency permits for operation of the public water system from Russell Hill Water Company, Inc. to Westgate Water and Sewer Municipal Authority.
5. That a Certificate of Public Convenience to abandon be issued
authorizing Russell Hill Water Company, Inc. to discontinue service to the public in Washington Township, Wyoming County following closing between the parties scheduled on July 15, 2000.
6. That Russell Hill Water Company, Inc. be deleted from the active lists of the Tariff and Annual Reports Section of the Commission’s Bureau of Fixed Utility Services and the Assessments Section of the Bureau of Audits following closing scheduled on July 15, 2000.
7. That all records with respect to Russell Hill Water Company, Inc. docketed at A-211295F2000 be marked closed following completion of ordering paragraph Nos. 4 and 5.
BY THE COMMISSION,
James J. McNulty
Secretary
(SEAL)
ORDER ADOPTED: May 11, 2000
ORDER ENTERED: May 11, 2000
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