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MAWC Shouldn't be in Sewage Business
Posted 07-08-1998
An issue that is on the horizon in Westmoreland County, and one that should be weighed
seriously, is the proposed venture into the sewage business by the Westmoreland County
Municipal Authority (water authority). The consequences could be quite profound and on the
surface, it may sound sensible to have water and sewage service controlled by one entity,
but if problems arise in one area of service, rate payers in the other area could feel the
effect.
To familiarize you with the details of the
issue, you must first understand who the players are. The Westmoreland County Municipal
Authority (MAWC) provides water service to a large part of our county, and parts of
Allegheny, Armstrong, and Fayette Counties. To expand their operations and acquire smaller
water companies, MAWC has incurred sizeable debt. They currently owe a total of nearly
$350 MILLION of long-term principal and interest, and the debt service payments are
factored into the rates consumers pay.
The municipalities approached to date about
acquisition of sewage services are: Hempfield, East Huntingdon, and Smithton. At this
point, the municipality receiving the most attention is Hempfield. It is the most
populated community in our county and has a sizeable sewage authority in place. They have
over $25 million of debt already, and with a plan to expand treatment capacity, will
likely have in the ballpark of $50 million of debt when that project is complete.
If the Hempfield Township Supervisors, who
created the Hempfield Municipal (sewage) Authority, choose to disband their Authority and
turn the sewage responsibility over to MAWC, MAWC would have to assume Hempfield's
outstanding debt. It could push their total debt to nearly $400 million. I'm not an
investment banker, but at some point the increased debt could affect MAWC's bond rating
and would certainly increase debt service payments. The rates for consumers both of MAWC's
water service and Hempfield's sewage service could be affected by the total debt of MAWC
or by changes in either utility.
The consumers of Hempfield's sewage service
have assets at stake too. The treatment plants and sewage lines throughout the township
would simply be given to an authority with a less than favorable track record when
venturing into areas other than water service. MAWC ventured into the landfill business
several years ago and finally sold that business after losing millions. Consumers in
Hempfield would have their interests of effective sewage service merged into an entity
whose primary responsibility is to provide water to parts of four counties.
The issue that most greatly concerns me, is
the possible transfer by the Hempfield supervisors, of even more power to an entity, MAWC,
that has no direct accountability to the electorate. The Commonwealth of Pennsylvania has
done little to regulate authorities over the past fifty years and they historically have
been a bastion of patronage and insider wheeling and dealing.
You may be reading this article thinking, I
don't live in Hempfield, East Huntingdon, or Smithton so this issue doesn't affect me.
WRONG! They are only the first entities identified by MAWC as potential acquisitions. In
Hempfield, political relationships make the event most likely. The supervisors must
understand the long range consequences for their township before acting to resolve some
temporary political battle. But if these acquisitions happen, others will be in
inevitable. If you think it is a good idea to have one, quasi-government entity
controlling almost all water and sewage service in our county, then say nothing. But if
this issue concerns you, speak up now before it is too late. |
