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2nd company interested in buying BASA

Another private utility company has expressed interested in purchasing the Butler Area Sewer Authority.

Aqua America, based in Bryn Mawr, Delaware County, sent a letter in June to BASA expressing interest in buying the authority.

The letter said the company was interested in buying if BASA was interested in selling, said Duane McKee, BASA executive director.

“It's a trend across America,” McKee said. “Some private companies buying (public) water and sewer (authorities). I think it's a trend.”

The letter didn't include an offer and didn't request any information from the authority, he said.

BASA board members discussed the letter in an executive session, but took no action and didn't respond.

“We've not responded,” McKee said.

Aqua America's interest in the authority comes after Pennsylvania American Water sent a similar letter to BASA in April.

McKee said the authority hasn't been contacted by Pennsylvania American since then, but the company said it remains interested.

“Pennsylvania American Water would welcome the opportunity to conduct a full review and analysis of the sewer authority's assets,” spokesman Gary Lobaugh said. “As the water provider for the community, we can provide real value to customers by taking advantage of the synergies and efficiencies that will exist by operating both the water and wastewater systems. We look forward to continuing and expanding discussions with all stakeholders in furtherance of this goal.”

Dave Zarnick, president of the township commissioners, said he heard about Aqua America's interest, but the township wasn't officially notified.

“We have no information from either entity at this time,” Zarnick said. “Now there's two entities interested in BASA.”

He said the commissioners are willing to listen to proposals from potential buyers.

“We would listen in order to make a decision: We're always open to sit down and listen,” Zarnick said.

Butler Mayor Ben Smith said he is aware of Aqua America's interest in BASA, and he encouraged authority board members to explore that offer and the offer from Pennsylvania American Water.

“I encouraged them to explore all options, whether they be good or bad, do due diligence and not to just shrug it off,” Smith said.

He said the authority is the entity that is empowered to decide whether to sell.

Smith said he looked into Third Class City statutes and learned that authorities have ultimate control over their property, operations and rights.

“We can't say yes or no,” he said about city council.

He said he prefers to stay out of any possible sale to avoid influencing the outcome.

McKee said he believes private utilities are interested in buying public sewer authorities because of the income they would provide, McKee said

“Steady income, I think, is the main reason,” he said.

Aqua America is part of Essential Utilities, one of the largest public water, wastewater and natural gas service providers in U.S., serving 5 million people in 10 states. Essential Utilities also owns Peoples Natural Gas.

Aqua's water and wastewater utilities serve 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. Aqua Pennsylvania, a subsidiary, serves 1.4 million customers in 32 counties in the state.

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