Jul 27, 2014 2 min read

The Pennsylvania Infrastructure Investment Authority last week approved a grant and low-interest loan totaling more than $9 million to rehabilitate Dunkard Valley Joint Municipal Authority’s water system to facilitate the authority’s consolidation with the neighboring East Dunkard Water Authority.

Dunkard Valley has distribution lines dating to the 1940s and frequent breaks have made service outages all too common. Providing water to only about 500 customers in an area with little growth, the authority simply doesn’t have the capability of raising money to replace the lines.

The financing package includes more than $5 million in grants and a $4.4 million loan. It will be used to build three water tanks and install 72,500 feet of new water line, 25 new hydrants and 466 new meters for Dunkard Valley’s customers.

Part of the plan also calls for Dunkard Valley to consolidate with East Dunkard Water Authority, whose service area surrounds Dunkard Valley’s service area.

After the Pennvest award was announced, chairmen of the two authority boards were cautious about making statements regarding the plan. Vic Shine, the Dunkard Valley board chairman, said many issues still have to be addressed before the plan can move forward.

One major issue, obviously, is whether rates that will have to be charged to pay off the PennVest loan will be affordable to customers. Pennvest usually takes into consideration the costs to the ratepayers, but ultimately it will be up to the two boards to decide what rate it believes its customers can afford.

“The money is there,” Shine said. “If we can make it work.”

The Dunkard Valley system needs many improvements to continue to provide safe and reliable service. We, too, hope they can make it work.