There is now more information about the settlement entered into by Butler Township and Butler City last week regarding the sale of Butler Area Sewer Authority assets to Pennsylvania American Water.
In addition to the two local municipalities, BASA, and the water company, the settlement also involves the state Office of Consumer Advocate, the Office of Small Business Advocate, and the Bureau of Investigation and Enforcement of the Pennsylvania Public Utility Commission.
The settlement reflects a purchase price of $230 million but the price PA American Water is permitted to use for future rate purposes is $2 million lower. The company will also contribute a total of $3.5 million over five years to a statewide hardship grant program as well as increase hardship grant eligibility.
The settlement also states that PA American Water will allow commercial customers to participate in the kinds of installment payment plans available to residential customers. Finally, the company agreed that following the rate freeze which expires one year after closing or January 1st 2025, BASA customer wastewater rates will be adjusted to 1.4 times the current rate or system average rates, whichever is lower.
Although this settlement has been filed, the deal is still under review by the PUC as an administrative law judge will consider the settlement as part of a recommendation to the PUC.
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