The House Consumer Affairs Committee recently held a hearing at the state Capitol on a bill that would block the sale of the Chester Water Authority (CWA) without ratepayer approval.
CWA provides drinking water to residents of Chester and Delaware counties. The authority rejected an unsolicited takeover offer in 2017 and has since been involved in 16 lawsuits.
Proponents of the authority maintaining its independence are concerned the state potentially may attempt to force a sale of a bailout the financially troubled city of Chester.
House Bill 2597 would require the sale of a public water or sewer authority to be approved by the ratepayers of that utility. State Rep. John Lawrence (R-Chester/Lancaster) introduced the bill.
“House Bill 2597 will give ratepayers the right to retain control over their water, authority governance, and the authority’s future,” Cynthia Letizell, CWA Board chairwoman, said at the hearing. “Rep. Lawrence’s bill is needed because a state agency and the recently appointed Act 47 receiver for Chester City are trying to force a sale of the authority’s customers and assets to a for-profit water company and give the sales proceeds to the Chester City government.”
Karen Versuk, Penn Township chief of operations, also testified at the hearing.