EXTON, PA — In West Whiteland Township, a group of State Senators has tackled head-on the topic of water privatization and the related consequential fallout from Act 12 of 2016, which has seen a sharp increase in water and wastewater rates throughout the state. The heavier burden on the residents was a primary theme at the public hearing co-hosted by Senators Katie Muth, Carolyn Comitta, John Kane, Tim Kearney and Judy Schwank.
The hearing, which took place on Monday at the West Whiteland Township Building in Exton, centered around the privatization and consolidation of water and sewer utilities. The discussion also highlighted the impact of the provisions outlined in Act 12 of 2016, which have resulted in significant rate increases across the Commonwealth.
The contentious Act 12 that allowed an alternative assessment system for the valuation of public water and sewage assets, has, according to the Senators, unwittingly opened the floodgates to substantial rate increases. This process, they argue, takes into account more than the physical value of the infrastructure – pipes, plants, etc. – and includes market factors such as the system’s worth to the community, resulting in inflated selling prices, which are inevitably passed onto the consumers.
“The public needs to be engaged, and their voices heard as the rates continue to climb,” Muth commented, expressing concern over constituents being taken advantage of by large corporations. The overarching sentiment, that Act 12 is the primary driver behind water rates spiraling upwards, was echoed by Senator Comitta, who emphasized the necessity of accessing affordable water and wastewater services as a fundamental matter of public health and wellbeing.
This issue of private ownership and rate increases was underscored by a recent study in the Water Policy journal, which named private ownership as the most critical factor in driving up utility bills across the nation’s 500 largest water systems, surpassing even factors like aging infrastructure and local regulations.
“Act 12 of 2016 appears to provide short-term financial benefits to municipalities and long-term gains for corporate shareholders, all at the expense of taxpayers,” Senator Kearney observed. The remedies reportedly being considered include Senate Bill 866, introduced by Senator Kane, which aims to repeal Act 12 entirely, and additional proposed reforms to Act 12 of 2016 from Senators Comitta, Kane, and Kearney.
According to an estimate submitted by Pennsylvania Consumer Advocate Patrick Cicero, Act 12’s ‘fair market value’ provision has caused or will cause consumers to pay at least $85 million more each year for water and wastewater service than they would have without this law.
In a clarion call to the legislature, Senator Schwank stated, “There’s no question that we must take action to protect consumers who are being taken advantage of”. The sentiment was echoed by her colleagues, ringing true the urgent need for reform to correct the imbalance in the system. With the ripple effects of Act 12 continuing to reverberate through communities, it’s clear that the fight for fair and affordable water rates continues in earnest in the Keystone state.
Senator Muth further reminded residents that public input on water and wastewater service rates is crucial and can be expressed during the scheduled hearings with the Pennsylvania American Water Company (PAWC), the state’s largest regulated water and wastewater service provider.
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