We have come through critical crossroads in our community’s history, having made a decision that will significantly benefit our residents, our shared regional economy and the environment.

In October 2022, after months of discussion, research and public input, the City of Butler and Butler Township voted to affirm the sale of the Butler Area Sewer Authority’s wastewater assets to Pennsylvania American Water, a trusted provider of our community’s water.

This decision followed nearly a year of thorough research and discussion about BASA's facilities, operations, debts and the required upgrades to our system’s aging infrastructure. We conducted a comprehensive review to ensure we were making the best decision.

At every step, we have kept residents, businesses and media informed, providing updates through customer letters, four open houses, fielding questions on our website and sharing information with local press. Throughout this process, we have received minimal feedback to oppose the sale. After speaking with stakeholders, the overwhelming opinion was this was the right move for the future of our community.

Addressing infrastructure needs and debt was a driving force behind this acquisition. BASA needs to complete $75 million worth of capital projects but lacks the capacity and funding. Additionally, BASA has around $46.5 million in debt and other liabilities.

Transitioning to Pennsylvania American Water's stewardship will mitigate these issues. The company has the industry expertise and capacity to invest in improvements. Just last week, it announced a $17.5 million plan for water storage upgrades in the commonwealth. Its investment will not stop there.

The infrastructure boost that will result from this sale will have a positive impact not only on the system itself but on our environment. Aging infrastructure often struggles to meet increasingly stringent environmental standards. Pennsylvania American is well-equipped to meet the requirements of the state Department of Environmental Protection and the U.S. Environmental Protection Agency.

The City of Butler and Butler Township were the sole incorporators of BASA and original investors in the wastewater system, which is why, if the $231.5 million asset sale is approved by the state Public Utility Commission, the proceeds that remain following the payment of debts and other liabilities will be split evenly between the city and township.

We have been working diligently to ensure the facility remains operational and available to customers for more than 60 years. As a result, we were the primary stakeholders in its operation, investment and eventual sale. Accordingly, the proceeds from the sale will flow to the original incorporators and will be used to benefit the community as a whole.

This is about equitable distribution, and every single customer in BASA’s jurisdiction will benefit equally. This means they will have access to the water company’s proposed pilot lateral program, which can result in direct savings of thousands of dollars, as well as to low-income support programs.

Additionally, all customers will benefit from the minimum one-year rate freeze from the closing date or Jan. 1, 2025, whichever is later. In Pennsylvania American Water’s first rate case, it will petition to transition billing to a metered rate system, meaning customers will pay only for what they use. This provides a more accurate reflection of each household's consumption.

BASA’s rates are well below many other sewer authorities across Pennsylvania and have remained arbitrarily low for years. To meet infrastructure demands, BASA would need to raise rates regardless of the outcome of the sale. If Pennsylvania American Water were to consider rate increases in the future, it would have to receive approval from the PUC — a process that takes approximately nine months and requires public input, offering an additional layer of customer protection.

We understand that change can cause concern. For more information on acquisition details and to leave questions or comments, please visit our website: https://www.resources4basacustomers.org/

We are your neighbors, friends and individual ratepayers. We all will be impacted by this acquisition, so please know that this was not and is not something we take lightly. We truly believe this is the right move for our community, setting us on a path toward a more sustainable future. We appreciate the trust you've placed in us, and we look forward to seeing the benefits this change brings.

Bob Dandoy is mayor of Butler. David Zarnick is a chairman of the Butler Township commissioners.