January 23, 2024
WEST WHITELAND – January 24, 2024 – State Senator Katie Muth (D-Chester/Montgomery/Berks), chair of the Pennsylvania Senate Democratic Policy Committee, joined Senator Carolyn Comitta (D-Chester), Senator John Kane (D-Chester/Delaware), Senator Tim Kearney (D-Delaware), and Senator Judy Schwank (D-Berks) yesterday in Chester County to co-host a public hearing focused on water privatization and the unintended consequences of Act 12 of 2016.
The hearing, held at the West Whiteland Township Building in Exton, focused on privatization and consolidation of water and sewer utilities and how the provisions included in Act 12 of 2016 have led to significant rate increases across the Commonwealth.
“Yesterday’s hearing really highlighted the need for the public to remain engaged and to have their voices heard as water and wastewater rates continue to soar across the Commonwealth in large part to the provisions enacted by Act 12 of 2016,” Muth said. “As legislators, we cannot allow our constituents to continue to be exploited by large corporations. I look forward to working with my colleagues on legislation that protects consumers and ensures fair rates for all public utilities.”
Act 12 of 2016 added Section 1329 of the Public Utility Code and changed the method and timing for calculating the value of what is included in utility rates for specific acquisitions of municipal water and wastewater systems by regulated public utilities. This law allowed sellers and purchasers, should they both agree, to use an alternative valuation method and assess public water/sewer assets at “Fair Market Value” which allows the dollar value of water systems to include not just pipes and plants but market factors such as their worth to the community, allowing them to be sold at much higher prices. The result has been a significant increase in rates for customers of both the acquired and acquiring systems.
“Water and wastewater services are a basic necessity for all people and rates need to be fair and sustainable for all communities. I thank Senator Muth, my Senate colleagues, the PUC, the Office of Consumer Advocate, and all those who participated in the hearing,” Senator Comitta said. “Residents, families, and those on fixed incomes, like seniors, are already facing rising consumer costs. The consensus is that Act 12 is driving water rates higher. I look forward to working with my colleagues to find solutions to help ensure access to quality, affordable water, and wastewater services as a matter of public health and well-being.”
In March 2022, a study was published in the Water Policy journal that surveyed the United States’ 500 largest water systems and found that private ownership was the most significant variable in driving up utility bills — even more than aging infrastructure, water supply and local regulations.
“Yesterday’s hearing exposed the consequences of Act 12 of 2016, dispelling the notion that it would aid distressed systems. Instead, it appears to provide short-term financial benefits to municipalities and long-term gains for the corporate shareholders, all on the backs of taxpayers,” Senator Kearney said. “It’s crucial for taxpayers and stakeholders to maintain pressure on our legislature. I proudly stand with my Democratic colleagues in the challenging but necessary battle to repeal Act 12, ensuring fair and affordable water rates for our constituents.”
According to written testimony submitted by Pennsylvania Consumer Advocate Patrick Cicero, since Act 12 of 2016, there have been 21 approved acquisitions that have been or will soon close. According to estimates, because of these acquisitions and directly due to the fair market value provision in Act 12, consumers are or will be required to pay at least $85 million more each year for water and wastewater service than they would have without this law.
“Yesterday’s policy hearing shed crucial light on the negative impacts of Act 12, highlighting the dire need for change,” said Senator Kane. “It’s disheartening to hear residents share their horror stories of a system that prioritizes profits over people. I’ve listened to the voices of those affected, and it’s clear that this process is broken. That’s why I’ve introduced Senate Bill 866, to completely repeal Act 12. I’m committed to finding a solution that doesn’t burden ratepayers with inflated costs to enrich shareholders. It’s time to put the needs of our residents first, and I will continue to do all I can to make that happen.”
Senator Kane’s Senate Bill 866, which is currently in the Senate Consumer Protection and Professional Licensure Committee, would repeal the provisions of Act 12 of 2016. Senators Comitta, Kane and Kearney are also working on legislation that would make several reforms to Act 12 of 2016. The cosponsor memo indicates that the reforms would include notification and public hearing requirements, a needs assessment, clarification of language regarding public benefit, post-sale monitoring of the contract, and provisions regarding conflicts of interest.
“We’ve had eight years to reflect on the consequences of Act 12 of 2016, and it’s clear that many consumers who experienced privatization are not in a good place. Communities in my district and all over the Commonwealth have seen their water and wastewater bills increase at a rate that is truly shocking,” Senator Schwank added. “There’s no question that the legislature must take action to protect consumers who are being taken advantage of.”
Participants in the hearing included Bill Ferguson and Peter Mrozinski, Keep Water Affordable; David McMahon, Neighbors Opposing Privatization Efforts; Kofe Osei, Towamencin Township Supervisor; Stephen DeFrank, Chairman, PA Public Utility Commission; Patrick Cicero, Pennsylvania’s Consumer Advocate; Amy Sturges, Deputy Executive Director of Advocacy, Pennsylvania Municipal League; and Anthony Bellitto, Executive Director, North Penn Water Authority.
In addition to the participants in yesterday’s hearing, East Whiteland Township, Pennsylvania American Water and Aqua Pennsylvania all submitted written testimony to the Committee which is also available online.
Senator Muth also reminded residents that the PUC has scheduled a series of 12 in-person and telephonic hearings to gather public input on the requests by Pennsylvania American Water Company (PAWC) to increase rates for water and wastewater services. PAWC serves 681,707 water and 97,585 wastewater customers in 37 counties and is the largest regulated water and wastewater service provider in Pennsylvania. The in-person hearings are scheduled across the Commonwealth beginning the last week in January.
All submitted testimony from the policy hearing and the full video is available at SenatorMuth.com/Policy
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Testimony
Panel 1: Affected Residents
Panel 2: Policy Solutions
Additional Testimony
May 12, 2015
READING, May 12, 2015 – Residents of Mohnton and south central Berks County can learn more about choosing their electricity generator and getting the latest from Harrisburg during Sen. Judy Schwank’s next town hall meeting.
The 90-minute get-together will start at 7 p.m., Thursday, May 14, in the social hall of Robeson Evangelical Lutheran Church.
“Electric choice has proven to be a popular subject in Berks County because many residents are seeking alternatives to increasingly expensive rates,” the senator said. “The PUC is planning to join us on Thursday to deliver the very latest news and tips on how electricity consumers can make good decisions.”
These community-wide town hall meetings are an essential part of Sen. Schwank’s work in the 11th Senatorial District.
Media coverage is welcomed.
WHAT: Sen. Judy Schwank to hold Town Hall Meeting in Mohnton
WHEN: 7 p.m. – 8:30 p.m.
WHERE: Social hall, Robeson Evangelical Lutheran Church, 3520 Plow Road, Mohnton
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Follow Sen. Judy Schwank via Facebook and Twitter and her website.
March 31, 2015
Public Utility Commission to talk electric choice
READING, March 31, 2015 – Residents of Centerport and northern Berks County will have the opportunity at 7 p.m., Thursday, April 2, to learn more about electric choice and share their thoughts and concerns on other topics during Sen. Judy Schwank’s next town hall meeting.
“Electric choice has been around for a while but not everyone is aware of how it works or what to do to take advantage of the program,” Schwank said. “An expert on the topic from the PUC will join the town hall to make sure everyone’s questions are answered. They’ll also show attendees how to save money on their monthly utility bills.
“We will also talk about other local issues, thoughts and concerns.”
Thursday’s town hall will happen at the Central Berks Lions Club. These community-wide meetings are an essential part of the senator’s work in the 11th Senatorial District.
Media coverage is welcomed.
WHAT: Sen. Judy Schwank to hold town hall meeting in Centerport
WHEN: 7 p.m. – 8:30 p.m.
WHERE: Central Berks Lions Club, 2207 Main St., Centerport
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Follow Sen. Judy Schwank on her website, Facebook, and Twitter.
August 9, 2012
READING, Aug. 9, 2012 — State Sen. Judy Schwank called the recent release of the Pennsylvania Public Utility Commission’s (PUC) evaluation of the response of electric utilities to outages caused by multiple severe storms last year a “step in the right direction,” but expressed concern that the agency’s efforts “might not go far enough.”
“Severe storm-related events, especially the freak snowstorm on Oct. 29, 2011, caused unprecedented, prolonged power outages throughout Berks County and the entire Commonwealth,” said Schwank.
“The PUC’s reports contain a number of positive recommendations, not the least of which is ensuring that electric distribution companies provide timely and accurate information to customers during outage events, and the ‘action items’ the commission will implement are a step in the right direction,” added Schwank. “However, while I am pleased that the Public Utility Commission has completed its lengthy and time consuming review, I am concerned that agency’s efforts might not go far enough.
“Last year’s storm-related outages caused real hardships for real people that demanded a thorough and timely response,” noted Schwank. “The wheels of government turn slowly and we need to make sure that the Commission follows through on implementing its action items to minimize the impact of future storm events, especially as we approach winter.”
Schwank noted that as a result of extensive meetings and communications she has had with officials of Met-Ed, the company had previously agreed to implement a number of procedures to improve the company’s response to weather-related outages, including stationing a company liaison in the Berks County 911 Emergency Call Center during these events.
“I intend to continue to work with our local utilities and push the commission to follow through to ensure that we are all ready to deal with any future events,” Schwank said.
Schwank also pointed out that even with the efforts to minimize the impact of future weather events on utility services it is important for area residents to be ready for potential emergencies. Information on how to prepare your home and family for emergencies is available at www.readypa.gov.
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November 23, 2011
READING, Nov. 23, 2011 — After receiving public input on the recent storm-related power outages that occurred in Berks County, State Sen. Judy Schwank provided the results of a storm-related power outage survey, she recently conducted, to the Public Utilities Commission (PUC) and asked the Commission to come up with a specific plan of action plan to improve the performance of utilities in future weather emergencies.
“More than 250 residents responded to my request for information with detailed accounts of their storm and power-outage experiences,” Schwank said. “I am grateful for their input and believe the responses will help improve how our utilities and the PUC respond during emergencies such as this.”
Earlier this month, Schwank asked the tens of thousands of Berks County residents who were left without power to provide her with specific information about their utility’s response to any problems they experienced with their service during and after the storm in an effort to gain an understanding of the storm’s impact on consumers.
Schwank said the results of the survey provided an eye-opening perspective of the storm’s impact and the response of the utility companies. The survey found that:
- Nearly 80 percent of respondents experienced power outages of more than 3 days;
- Sixty-five percent endured more than five days without power;
- More than 40 percent of the respondents cited poor communication and financial loss as their chief concerns;
- A third of respondents cited inadequate line maintenance as an important concern; and
- Eighteen percent mentioned frequent outages and service reliability and medical concerns as major issues.
Today, Schwank sent a letter to the PUC detailing the results of the public survey and requesting a specific action plan from the commission.
“The purpose of this effort is not to castigate or vilify utility employees; indeed, the linemen and women and other workers worked very hard under extraordinary conditions to restore power,” said Senator Schwank. “The goal here is to get the Commission to consider the real faces and real life impacts of the storm and the response of utilities to it and take substantive action to ensure that they do better in the future. In particular, two glaring areas that need improvement are the method and manner utilities employ to communicate with customers during outages and the extent and quality of their preemptive maintenance and equipment repair and replacement programs. “
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November 9, 2011
READING, Nov. 9, 2011—State Sen. Judy Schwank is seeking the public’s input on the recent storm that brought winter weather to Berks County and left hundreds of thousands of residents without power.
“While we couldn’t anticipate the scope of this pre-winter snowfall, it left many residents in the cold and dark for days. I believe the lagging response from our local utilities must be examined,” said Schwank, who also lost power for several days. “I am asking for constituents to share their stories with me so that I can take the right steps to ensure that we receive a better response from our local utilities in the future.”
The senator recently sent a letter urging the Public Utility Commission to review the response of the area’s utility companies to the Oct. 29 storm and she plans to follow up with PUC and the utilities to discuss this issue further.
“It would be helpful if residents who were affected could provide me with specific information about their utility’s response to any problems they experienced with their service during and after the storm,” Schwank said. “Their story will be used for the sole purpose of gaining an understanding of the storm’s impact on consumers.”
A submission form is available on the senator’s website at www.senatorschwank.com/outage. Residents may also submit their account in writing to State Sen. Judy Schwank, RE: Power Outage, Rockland Professional Center, 1940 N. 13th St., Suite 232, Reading, PA 19604.
Editor’s Note: Attached is a copy of the letter Sen. Schwank sent to the Public Utility Commission.
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