Emergency ‘receivership’ requested for EDWA after water problems
Mike Jones/Observer-Reporter
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The state Department of Environmental Protection is taking “unprecedented action” asking a state appellate court to sign over total operations of the beleaguered East Dunkard Water Authority to another company following last week’s emergency that left 4,200 people without water.
An emergency order filed Wednesday by the state Public Utility Commission authorizes Pennsylvania American Water Co. to take immediate control of EDWA’s treatment plant and distribution system due to the “serious public health and safety threat” posed to residents living in southeastern Greene County, upon receipt of a court order.
The DEP is expected to file a petition asking the state Commonwealth Court to hand operations of East Dunkard to PAWC. The court still has yet to approve the request for the receivership to grant temporary oversight to PAWC, and it’s unclear when it might rule on the situation.
The request comes a week after all customers in the EDWA network lost water service for several days following a turbidity spike on Oct. 22 caused the plant’s filtration system to fail, which eventually meant it could no longer produce water. The DEP cited a laundry list of violations and the staff’s failure to comply with its orders as another reason for the need to move operations to PAWC.
“The lack of even non-potable water service, renders users of the authority’s system without water for basic sanitary and hygienic purposes, including bathing, dishwashing, and toilet flushing,” the emergency order reads.
The emergency situation prompted DEP and PUC to act jointly due to alleged continued violations in which East Dunkard has not had a “certified operator” to make “legally authorized” decisions for the water system since Sept. 15.
“Among the conditions underlying the violations identified at the authority’s water system are conditions that threaten to render portions of the water treatment process inoperable or ineffective, which would endanger public health, safety, and welfare,” according to the emergency order.
The emergency order is signed by PUC Board Chairman Stephen DeFrank.
The PUC has appointed receiverships in the past for public utilities under its jurisdiction while working in consultation with their management and boards. What makes this emergency petition so unusual is that the PUC does not have jurisdictional oversight for municipal water operators such as East Dunkard. However, the PUC does have jurisdiction over Pennsylvania American Water, meaning it needed to sign off on the emergency request to change the operator through a court order.
“We note that the facts and circumstances of this case are unusual, yet, based upon the specific facts and circumstances in this matter, we determine that it is necessary and prudent to take this unprecedented action of establishing the rights, duties and obligations of a jurisdictional utility if and when it is appointed by the Commonwealth Court to be the receiver of this non-jurisdictional entity,” the emergency order reads. “Accordingly, we undertake this emergency action where this immediate case appears to present a serious public health and safety threat that the Commission will not ignore.”
It’s not known if East Dunkard Water Authority’s board will remain in place or if any workers with the system will be retained if the emergency petition is granted. Neither EDWA General Manager Theresa Helton nor board solicitor Lane Turturice returned phone calls Thursday seeking comment on the potential change.
All of this comes as PAWC is in the process of acquiring EDWA’s assets to eventually take over operations after agreeing to purchase they system for $5 million in June. This emergency receivership does not alter that acquisition process, which could take until late 2024 or early 2025 to be finalized. The PUC wrote in the emergency order that the DEP considered PAWC for the receivership in part because of its “familiarity with the conditions” of the system.
“In addition, the Commission concurs that PAWC has the familiarity and understanding of the circumstances to work in an effective manner toward planning and executing corrective actions to restore safe, adequate, and reliable service to the public,” the emergency order states.
If and when the Commonwealth Court approves the receivership, the emergency transfer to PAWC would happen immediately upon the court order being filed.
While service was restored to all residents last weekend, people are still reporting discolored and foul-smelling water as the entire system remains under a boil advisory indefinitely. PAWC has agreed to continue supplying bottled water as needed to EDWA customers.
PAWC spokesman Gary Lobaugh said in a statement Thursday that they were awaiting the Commonwealth Court’s order to move forward with the “troubled” system.
“Upon entry of an appropriate order, we stand willing and ready to step into this role to assist the agencies and the community,” Lobaugh said. “We have a long track record of being a solution for troubled systems and have the resources, leadership, and expertise to bring distressed systems into compliance.”
All of this also comes as EDWA and its predecessor, the East Dunkard Water Association, are being sued by a dozen residents claiming that negligence by the system operator led to various health problems over the years. Coincidentally, the complaint was filed in Greene County Court of Common Pleas on Oct. 23 just as the DEP was receiving data showing the turbidity spike that led to the boil water advisory and eventual plant shutdown. Somerset attorney Marc Valentine, who filed the lawsuit on behalf of the plaintiffs, did not respond Thursday to a phone call seeking comment.
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.