Feb 10, 2024 By Mike Jones 3 min read

Commonwealth Court has approved the receivership for Pennsylvania American Water Company to operate the East Dunkard Water Authority.

President Judge Emerita Bonnie Brigance Leadbetter signed off on the order Thursday that had been proposed by all parties earlier this week, paving the way for PAWC to immediately take control of the troubled water provider in southeastern Greene County.

The order follows the settlement negotiated between EDWA and the state Department of Environmental Protection following a mediation session Jan. 4 to discuss terms of the receivership.

The DEP began pursuing the receivership on Nov. 1 after issues at EDWA’s treatment plant near Dilliner left all customers without water for several days in late October. The authority also had a lengthy track record of poor water quality that led to numerous DEP violations over the years.

PAWC had already agreed to purchase EDWA’s assets and operations for $5 million in July, which DEP officials said made it a natural choice to take over operations.

“Ensuring ample, properly treated drinking water to EDWA’s consumers has been DEP’s priority,” DEP Southwest Regional Director Jim Miller said in a written statement Thursday. “Appointing Pennsylvania American Water Company was the most logical and efficient choice to act as receiver, especially since PAWC intends to acquire the EDWA’s public water system.”

The court’s ruling Thursday allowed for the state Public Utility Commission to immediately authorize the change after issuing its own emergency order in early November. The receivership went into effect Friday, meaning PAWC now oversees EDWA’s system and services its existing customers as the transition goes into effect.

The receivership allowed the parties to avoid an upcoming hearing in Commonwealth Court, which meant the transfer was more structured and streamlined. East Dunkard’s board approved the receivership agreement on Feb. 1.

“Paving the way for this receivership required the coordination of many people, including Pennsylvania American Water Company and the Public Utility Commission, and DEP appreciates their efforts,” Miller said.

PAWC officials said they’re ready to operate the system and make various upgrades to provide clean drinking water to the 4,200 customers who live in Dunkard and Greene townships and portions of Cumberland, Monongahela, Perry, and Whiteley townships.

“We are ready and willing to step in and take responsibility for operating and managing the East Dunkard Water Authority system by providing support, resources and technical expertise to the existing local operations team,” PAWC President Justin Ladner said in a written statement. “We look forward to serving the residents of East Dunkard and surrounding communities by working to bring the system back into compliance, reduce water loss, and provide customers with safe, reliable drinking water.”

PAWC is still in the process of getting regulatory approval for the sale to be finalized, which could happen later this year. However, there are benchmarks included in the receivership agreement that would allow the company to back out of the sale if it chooses to do so.

Meanwhile, it’s not known what impact the receivership and PAWC’s impending purchase of EDWA’s assets will have on a lawsuit filed in October by a dozen customers alleging that poor water quality led to various health problems. More people have since signed onto the lawsuit after its filing in Greene County Court of Common Pleas. Marc Valentine, the Somerset County attorney who is handling the lawsuit, did not respond to a phone message seeking comment Friday.