PUC dismisses joint settlement, civil penalty against East Dunkard
news@greenecountymessenger.com
The state Public Utility Commission has dismissed a joint settlement between its investigatory bureau and the East Dunkard Water Authority, which would have required the municipal water supplier in southeastern Greene County to pay a $225,000 civil penalty.
The PUC鈥檚 five-person board during its meeting Thursday rejected the negotiated settlement and dismissed the case because the commission determined it did not have jurisdiction over municipal authorities such as East Dunkard.
The water authority reached the proposed settlement with the PUC鈥檚 Bureau of Investigation and Enforcement last September after it admitted to providing water to five neighboring communities since 2011 without regulatory approval. The EDWA鈥檚 board later took corrective action to file certificates of public convenience with Cumberland, Greene, Monongahela, Perry and Whiteley townships, where some residents had been receiving water from the authority.
鈥淯ltimately, if that civil penalty had stood, the board would鈥檝e faced a decision on how best to raise the money to pay that fund,鈥� said Lane Turturice, who serves as EDWA鈥檚 solicitor.
He said the authority recently found a letter from the board鈥檚 previous solicitor, Dennis Makel, who apparently informed East Dunkard officials that they did not need a certificate to offer water to other communities. Makel also negotiated the joint settlement with the PUC before his departure earlier this year, Turturice said.
鈥淭his board was upset because that occurred,鈥� Turturice said. 鈥淚t wasn鈥檛 their fault, and they were merely following the advice of their legal counsel, and they shouldn鈥檛 be held responsible.鈥�
In an attempt to raise money last year for the anticipated civil penalty, the water authority began requiring customers to pay a $16.07 surcharge on their water bills over 10 months, but backtracked and refunded or credited people after an outcry by residents.
鈥淎ny previous surcharges were refunded to ratepayers,鈥� Turturice said. 鈥淭hey decided it wasn鈥檛 proper because the matter had not yet been concluded.鈥�
The authority voted in June to sell its assets to Pennsylvania American Water for $5 million. The PUC鈥檚 regulatory review has not yet begun, and while Turturice said the joint settlement didn鈥檛 necessarily delay the process, it still couldn鈥檛 begin until the matter was final. He expects the sale to close late next year.
鈥淚t鈥檚 going to be a while,鈥� Turturice said. 鈥淲e鈥檝e been moving forward. There鈥檚 a process that鈥檚 required.鈥�
However, the problems facing East Dunkard Water Authority are not over with the dismissal of the joint settlement.
On Monday, a dozen residents who use water from East Dunkard filed a lawsuit in Greene County Court of Common Pleas against the municipal authority and several companies alleging poor water quality has led to a variety of health problems.
The lawsuit names East Dunkard Water Authority and its predecessor, the East Dunkard Water Association, along with engineering firm Harshman CE Group LLC, Consol Energy, CNX Resources, Allan鈥檚 Wastewater Service Inc., DuPont and Chemours Company.
The lawsuit claims acid mine drainage and wastewater from Marcellus shale drilling tainted the water supply in Dunkard Creek, and alleged negligence by East Dunkard allowed dangerous chemicals to be passed on to consumers.
Turturice said he was unaware of the facts of the case and the lawsuit has been turned over to the water authority鈥檚 insurance carrier to mount a defense. The plaintiffs鈥� Somerset-based attorney, Marc Valentine, did not respond to a phone call seeking comment on the lawsuit. Attempts to reach Consol and CNX were unsuccessful Monday.
The authority has had numerous complaints about water quality for more than a decade, including multiple boil water advisories in recent years.
The water authority currently serves about 1,600 customers in its pipeline across southeastern Greene County.
It鈥檚 not clear if the lawsuit could affect the acquisition by Pennsylvania American Water.