On August 9, the Public Utility Commission announced it has appointed a receiver to operate the Indian Springs Water Company, a small, troubled water company that serves 54 homes and approximately 137 residents in the community of Glen Summit, located in Fairview Township, Luzerne County.

Section 529 of the Public Utility Code authorizes the PUC to consider whether a capable public utility should acquire a troubled water or wastewater utility-- such as Indian Springs-- after an investigative proceeding can examine whether the utility company can provide safe, adequate, reliable, and reasonably continuous service to its customers at just and reasonable rates.

The Commission’s Order directs the Pennsylvania American Water Company to act as receiver for Indian Springs on an interim basis, beginning Aug. 19, 2019-- and continuing through the pending Section 529 proceedings, to ensure the continued adequate, safe, and reliable operation of that system until the conclusion of the full Section 529 proceeding.

In recommending the Order, the PUC’s Bureau of Technical Utility Services raised a number of concerns about the operation of this water system, most notably that a “Do Not Consume” directive from the Department of Environmental Protection has been in place for Indian Springs since February 7, 2019, due to high levels of lead and copper, along with unsanitary conditions of the water system.

Additionally, Indian Springs has allegedly been informed by DEP that its notices to customers are deficient, and DEP records indicate multiple “notices of violation” for Indian Springs since 2015 for various issues related to water quality and contamination.

The PUC Order requires that Indian Springs provide notice to its customers of the imposition of the receivership and the initiation of a Section 529 proceeding. The Company must also turn over all assets, books, records and accounts to the receiver no later than Aug. 19, 2019, along with any assets or property used and useful in the provision of water service.

Additionally, Indian Springs owners and employees are directed to provide full and unconditional cooperation with the orderly transition of operations, management and oversight to the receiver. 

PAWC will also assume certain responsibilities for the operation of the Indian Springs water system according to the directives of the Commission’s Order. 

The same Order also expects the participation of the Commission’s Bureau of Investigation and Enforcement in the related Section 529 investigation proceeding.

Documents related to this case are available at PUC Docket No.: M-2019-3011972.

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[Posted: August 9, 2019]

8/12/2019