PUC dismisses joint settlement, civil penalty against East Dunkard
The state Public Utility Commission has dismissed a joint settlement between its investigatory bureau and the East Dunkard Water Authority, which would have required the municipal water supplier in southeastern Greene County to pay a $225,000 civil penalty.
The PUC’s five-person board during its meeting Thursday rejected the negotiated settlement and dismissed the case because the commission determined it did not have jurisdiction over municipal authorities such as East Dunkard.
The water authority reached the proposed settlement with the PUC’s Bureau of Investigation and Enforcement last September after it admitted to providing water to five neighboring communities since 2011 without regulatory approval. The EDWA’s board later took corrective action to file certificates of public convenience with Cumberland, Greene, Monongahela, Perry and Whiteley townships, where some residents had been receiving water from the authority.
“Ultimately, if that civil penalty had stood, the board would’ve faced a decision on how best to raise the money to pay that fund,” said Lane Turturice, who serves as EDWA’s solicitor.
He said the authority recently found a letter from the board’s previous solicitor, Dennis Makel, who apparently informed East Dunkard officials that they did not need a certificate to offer water to other communities. Makel also negotiated the joint settlement with the PUC before his departure earlier this year, Turturice said.
“This board was upset because that occurred,” Turturice said. “It wasn’t their fault, and they were merely following the advice of their legal counsel, and they shouldn’t be held responsible.”
In an attempt to raise money last year for the anticipated civil penalty, the water authority began requiring customers to pay a $16.07 surcharge on their water bills over 10 months, but backtracked and refunded or credited people after an outcry by residents.
“Any previous surcharges were refunded to ratepayers,” Turturice said. “They decided it wasn’t proper because the matter had not yet been concluded.”
The authority voted in June to sell its assets to Pennsylvania American Water for $5 million. The PUC’s regulatory review has not yet begun, and while Turturice said the joint settlement didn’t necessarily delay the process, it still couldn’t begin until the matter was final. He expects the sale to close late next year.
“It’s going to be a while,” Turturice said. “We’ve been moving forward. There’s a process that’s required.”
However, the problems facing East Dunkard Water Authority are not over with the dismissal of the joint settlement.
On Monday, a dozen residents who use water from East Dunkard filed a lawsuit in Greene County Court of Common Pleas against the municipal authority and several companies alleging poor water quality has led to a variety of health problems.
The lawsuit names East Dunkard Water Authority and its predecessor, the East Dunkard Water Association, along with engineering firm Harshman CE Group LLC, Consol Energy, CNX Resources, Allan’s Wastewater Service Inc., DuPont and Chemours Company.
The lawsuit claims acid mine drainage and wastewater from Marcellus shale drilling tainted the water supply in Dunkard Creek, and alleged negligence by East Dunkard allowed dangerous chemicals to be passed on to consumers.
Turturice said he was unaware of the facts of the case and the lawsuit has been turned over to the water authority’s insurance carrier to mount a defense. The plaintiffs’ Somerset-based attorney, Marc Valentine, did not respond to a phone call seeking comment on the lawsuit. Attempts to reach Consol and CNX were unsuccessful Monday.
The authority has had numerous complaints about water quality for more than a decade, including multiple boil water advisories in recent years. The water authority currently serves about 1,600 customers in its pipeline across southeastern Greene County.
It’s not clear if the lawsuit could affect the acquisition by Pennsylvania American Water.