At the Board of Supervisors Meeting on Wednesday, August 28, Chairman Wilson read the following statement:
Since our last meeting, the Pennsylvania Public Utility Commission issued an order setting a formula that effectively determines what it deems to be a “reasonable” purchase price for a wastewater system in a sale to a public utility.
The purchase price Pennsylvania American Water must pay to the Township under the Asset Purchase Agreement is far higher than the PUC’s purchase price standard under its new formula. Although the PUC did recently conditionally accept PAWC’s application to purchase our system, given the new legal framework instituted by the PUC, it is very unlikely the PUC would ultimately approve the sale of our system to PAWC as currently structured.
After discussions with PAWC and our counsel in the last week, I am asking that an item be placed on the agenda for our next meeting to terminate the APA based on this change in law and authorize all necessary actions, including signing the associated termination documentation, to do so.
As you know our solicitor, Bob Iannozzi is on vacation. When he returns he will address this request.
He then asked the Township Manager, David Kraynik, to ensure this was added to the next meeting agenda (September 11).
