Mar 14, 2025 By Mike Jones 5 min read

The state Public Utility Commission has approved Pennsylvania American Water’s plans to purchase the beleaguered East Dunkard Water Authority, setting the stage for the sale to be finalized later this year.

Calling it an “extraordinary” situation during its monthly meeting Thursday, the five-member PUC board unanimously agreed to the joint petition negotiated by both sides in which PAWC will pay $5 million for the system in southeastern Greene County that has been beset with water quality problems for years.

“This is a system that actually dewatered last year. This is probably the largest system I’ve ever seen dewater,” PUC Chairman Stephen DeFrank said, alluding to an incident in October 2023 when EDWA’s treatment plant stopped functioning and most of the 4,200 people who rely on the system were without water for three days. “(There was) massive water loss rates here and (PAWC) started working on this system. This matter here today brings finality to an issue that we’ve been dealing with for the last eight or nine months here.”

East Dunkard’s board signed an agreement with Pennsylvania American for it to purchase the EDWA system for $5 million in July 2023, but the water company took receivership of it six months later through a court order following the outage. Since that time, PAWC has made upgrades to the treatment facility on Route 88 near Dilliner, along with improvements to pumps and storage tanks throughout the system. The two sides have been working through the PUC for nearly a year to finalize the purchase agreement to allow PAWC to take official control of the system, with the sale expected to close this summer.

“We are going to be faced with more and more extraordinary situations here,” DeFrank said of problems with other smaller water authorities across the state. “Extraordinary situations often require extraordinary solutions and resolutions.”

While the PUC has been reviewing the matter for months, residents in southeastern Greene County have been dealing with poor water quality for years.

Dunkard Township resident Clarissa Eggers, who previously raised concerns about the foul-smelling and discolored water coming from her taps, said she was relieved by the PUC’s vote to approve the agreement and has already noticed improvements during PAWC’s receivership.

“I think it’s a better feeling than where we were a few years ago, that’s for sure. I’m glad they improved it,” Eggers said. “It’s going to be a really good feeling when (the sale) gets closed and somebody capable is taking it over and controlling it completely.”

Eggers and dozens of other customers filed a lawsuit against EDWA in late 2023 alleging poor quality led to numerous health problems over the years. That lawsuit remains active in Greene County Court of Common Pleas, even as the sale edges closer to completion.

While Eggers and other residents have expressed concerns about possible rate increases from PAWC in the future, she thinks the new ownership will ultimately be beneficial to all of them. She drives by the water treatment plant daily and sees numerous vehicles parked in the lot and workers on site making upgrades to the facility and water containment pond. Despite not trusting to drink from the tap ever again, she isn’t worried anymore about bathing in the water or using it to wash her clothes.

“I doubt I’ll ever drink (the water) unless they run new pipes for the whole system,” she said. “Visually, we haven’t had any off-colored water since the receivership. I’ve also noticed more of a chlorine smell, which is something we didn’t get before. Before, it usually had a wet dog smell. Now it smells like it’s being treated, which is definitely an improvement.”

Now 13 months after taking control of the East Dunkard water system through the court-ordered receivership, PAWC officials touted nearly $2 million in enhancements during that time. The company said EDWA had 76 notices of violation from the state Department of Environmental Protection from January 2023 until February 2024, which PAWC has worked to correct.

“Like so many of the water systems we acquire across Pennsylvania, East Dunkard Water Authority was in rough shape and largely out of compliance with drinking water regulations,” PAWC President Justin Ladner said. “In just one year as the receiver, our team has significantly improved water quality for customers. We take pride in these achievements, all aimed at providing residents with safe and reliable drinking water.”

The agreement was reviewed and recommended for approval by PUC Administrative Law Judge Eranda Vero on Feb. 27. Once the sale closes, customers will notice that the $17.54 per month PENNVEST surcharge they had been paying through EDWA will be wrapped into their normal bill. Customers will also be receiving information about whether they qualify for low-income subsidies, which is standard throughout PAWC’s network.

There are about 1,800 homes and businesses in Dunkard and Greene townships, and portions of Cumberland, Monongahela, Perry and Whiteley townships that rely on water from EDWA.