PUBLIC UTILITY COMMISSION
Harrisburg, PA. 17105-3265
Public Meeting held April 27, 2000
Commissioners Present:
John M. Quain, Chairman
Robert K. Bloom, Vice Chairman
Nora Mead Brownell
Aaron Wilson, Jr.
Terrance J. Fitzpatrick
Application of Waterflow Pike, Inc. For approval of the transfer and abandonment of the system serving Woodland Hills Development, Paupack Township, Wayne County / Docket Number:
A-210009 F2001
ORDER
BY THE COMMISSION:
By the Application filed on February 14, 2000, Waterflow Pike, Inc. (Applicant) seeks approval for the transfer and abandonment of the water system serving the Woodland Hills Development (Development), Paupack Township, Wayne County.
Currently, the Applicant provides unmetered residential water service to 351 customers in seven unconnected water systems, including a system serving 113 customers in the Development. The Applicant was created by a merger with Waterflow Wayne, Inc. and approved at Docket No. 210009 F0002 on June 20, 1996. The Applicant also serves customers in the Township of Palmyra, Pike County.
The Applicant wishes to transfer ownership by sale to the Woodland Hills Association (Association) and, thereby, abandon water service to the Development. The Association is a bona fide cooperative for the following reasons: (1) it is a not-for-profit corporation under control of the property owners of the Development, (2) it will only provide water service to property owners of the Development, (3) membership in the Association is limited to property owners in the Development, (4) any property owner within the Development has the option to become a member of the Association, (5) control and ownership by each member of the Association is substantially equal, and (6) the water service charge to be assessed by the Association to property owners who utilize the system will be determined on an equitable basis by a board of directors elected by all members of the Association.
Currently, each customer of the Applicant located within the Development pays $175 per annum, a rate that has been in effect since 1989. In addition, two property owners currently residing in the Development have drilled their own wells.
An Agreement of Sale (Agreement) between the Applicant and the Association, dated October 10, 1999, specifies, inter alia, a purchase price of $38,500, including three wells, three pumps, all water rights, casements, land, and all distribution system assets within the Development.
This Agreement also transfers to the Association the Public Water Supply Construction Permit No. 649604, dated October 17, 1997, and by request dated October 13, 1999, extended to October 17, 2001 by the Department of Environmental Protection (DEP). This construction permit was issued by DEP due to continuous failures by the Applicant to provide disinfection of the groundwater sources. This permit requires iron and manganese treatment facilities and certain wellhead and piping modifications. The Association has obtained a $150,000 bank loan with which to make these improvements, estimated to be $100,000, as well as pay the purchase price of $38,500.
Proofs of publication and service were submitted by the Applicant. No protests were filed and no hearings were held. In addition, the Applicant is current on all regulatory assessments.
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 Application of Waterflow Pike, Inc. is hereby approved.
2. That a certificate of public convenience be issued authorizing Waterflow Pike, Inc. to abandon water service to the public in the Woodland Hills Development, Paupack Township, Wayne County, a portion of its service territory.
3. That Waterflow Pike, Inc. will continue to provide water service to the remaining portions of its service territory.
4. That the folder docketed at A-210009 F2001 be marked closed.
BY THE COMMISSION,
James J. McNulty
Secretary
(SEAL)
ORDER ADOPTED: April 27, 2000
ORDER ENTERED: April 27, 2000
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