Water company interested in acquiring BASA
Pennsylvania-American Water is interested in adding the Butler Area Sewer Authority to its portfolio of water and wastewater facilities in the state.
During the public comment period of BASA's board meeting last week, a Pennsylvania American Water official expressed interest in a possible sale.
The subject was not on the meeting agenda and board members discussed it only briefly, said Duane McKee, BASA executive director.
Negotiations are not taking place, McKee said. He said discussions are “very preliminary.”
“As the local water provider, Pennsylvania American Water has enjoyed our long-standing relationship with the community. We have recently conducted outreach efforts to indicate our interest in working with the Butler Area Sewer Authority and local leaders to explore a potential sale,” said spokesman Gary Lobaugh.
The utility company is looking forward to future discussions with stakeholders and is conducting research on BASA's sewage treatment system, Lobaugh said.
The authority's attorney told BASA that the city of Butler and Butler Township would have to approve a sale, McKee said.
“It cannot be sold unless both municipalities agree to it,” said Dave Zarnick, chairman of the township commissioners.
The city and township formed BASA, whose board consists of three representatives from the city and two from the township, Zarnick said. The township and city haven't met to discuss the matter, he added.
Pennsylvania American Water sent letters expressing its interest in a purchase to BASA board members, he said.
He said he does not believe BASA has been appraised.
“It's early in the game,” Zarnick said.
He said the commissioners are willing to listen to a sales proposal and will act in the best interest of township residents.
BASA is one of five sewer authorities Pennsylvania American Water is interested in buying, Zarnick said.
A subsidiary of American Water, Pennsylvania American Water serves more than 408 communities in 36 counties in the state, including providing water service to 666,000 customers and wastewater service to 74,000 customers.
The utility company operates 37 water treatment plants, including one in Summit Township, and 20 wastewater treatment plants and employs 1,100 people.
In addition to the city and Butler Township, BASA's service area of 32.5 square miles includes Center Township, East Butler and parts of Connoquenessing, Oakland, Summit and Penn townships.
BASA has nearly 15,000 customers and operates more than 230 miles of interceptor sewers, 22 pump stations and the 10 million gallon per day sewage treatment plant located on Litman Road.
Butler Mayor Ben Smith could not be reached for comment Wednesday evening.
