NOTICES
Tentative Order
[32 Pa.B. 5374] Public Meeting held
October 10, 2002Commissioners Present: Glen R. Thomas, Chairperson, statement follows; Robert K. Bloom, Vice Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick, statement dissenting in part follows; Kim Pizzingrilli
Joint Application of Pennsylvania Suburban Water Company and White Rock Water Corporation for approval of: 1) the acquisition by Pennsylvania Suburban Water Company of water system assets of White Rock Water Corporation; 2) the right of Pennsylvania Suburban Water Company to offer, render, furnish or supply water service to the public in portions of Monroe and South Middleton Townships, Cumberland County, Pennsylvania; 3) the right of White Rock Water Company to abandon water service; and 4) the right of Pennsylvania Suburban Water Company to abandon water service in South Middleton Township; Doc. Nos. A-210104F0019; A-213440F2000; A-210104F2002
Tentative Order By the Commission:
On June 24, 2002, pursuant to section 1102(a)(1)(i) of the Public Utility Code, Pennsylvania Suburban Water Company (Suburban), 762 W. Lancaster Avenue, Bryn Mawr, PA 19010-3489 and White Rock Water Corporation (White Rock), 1369 Swope Drive, Boiling Springs, PA 17007, filed an Application for Commission approval of Suburban to acquire White Rock's assets and to begin the right to offer, render, furnish or supply water serve to the public in portions of Monroe and South Middleton Townships in Cumberland County, Pennsylvania as shown on a map filed with the Application (A-210104F0019). Pursuant to section 1102(a)(2), White Rock seeks Commission approval to abandon water service in aforementioned townships (A-213440F2000). At the request of South Middleton Township and South Middleton Township Municipal Authority, Suburban seeks Commission approval of Suburban's partial abandonment of its rights in South Middleton Township (A-210104F2002).
No protests, motions or petition were filed. Proofs of service to the appropriate entities and publication were filed. No hearings were held.
Suburban is a jurisdictional public utility water company, duly organized and existing under the laws of the Commonwealth of Pennsylvania. Suburban presently provides service to more than 380,000 customers located in southeastern Pennsylvania, the Pocono Mountains, the Sharon area, the Sayre area, Forest County and the Shamokin area of Pennsylvania.
White Rock provides water service to approximately 275 residential homes in an area locally known as ''White Rock Acres,'' Monroe Township, Cumberland County. At full grow-out, White Rock Acres will contain 380 homes. White Rock desires to leave the water business and to sell its water system. The Department of Environmental Protection reports that there are no outstanding complaints or actions against White Rock.
Suburban has entered into an Assets Purchase Agreement with White Rock and it's subsidiary, Penn Products Corporation. Negotiations were conducted at arm's length and the agreed price will be $400,000 for the current in-place assets. These assets include three wells along with four pump stations, three water storage tanks with a total capacity of 30,000 gallons, mains, residential meters, valves, permits, etc. Suburban will use existing funds to pay for White Rock. Under a separate transaction, Suburban will acquire a site for the installation of another well and construct a future storage tank.
At the request of South Middleton Township and South Middleton Municipal Authority, Suburban will abandon water service rights in that township. There are no current customers in South Middleton Township. All of White Rock's assets are located in Monroe Township.
Suburban proposes to adopt White Rock's current rates on file with the Commission. A typical customer, using 60,000 gallons per year, will experience an annual cost of $434.
Upon full consideration of all matters of record, we find that approval of these Applications is necessary and proper for the service, accommodation, and convenience of the public. For these reasons, we tentatively conclude that approval of these applications is in the public interest; Therefore,
It Is Ordered That:
1. The Joint Application of Pennsylvania Suburban Water Company (Suburban) and White Rock Water Corporation (White Rock) is hereby tentatively approved (A-210104F0019), the abandonment of water service by White Rock (A-213440F2000) is hereby tentatively approved and the partial abandonment by Suburban in South Middleton Township is hereby tentatively approved (A-210104F2002).
2. A copy of this Tentative Order be published in the Pennsylvania Bulletin giving the public 10 days from the date of publication to file written comment or request oral hearing.
3. Absent the filing of adverse public comment or request for oral hearing within 10 days from the date of publication pursuant to Ordering Paragraph No. 2, this Tentative Order shall become final without further order of the Commission.
4. Upon this Tentative Order becoming final pursuant to the provisions of Ordering Paragraph No. 3, the Secretary shall issue a Certificate of Public Convenience (CPC) pursuant to section 1102(a)(1)(i) of the Public Utility Code authorizing Suburban to begin to offer, render, furnish or supply water service to the public in portions of Monroe and South Middleton Township, Cumberland County, Pennsylvania.
5. Suburban shall file a tariff supplement within 30 days of closing reflecting this transaction and provide verification of said closing to the Commission.
6. Upon this Tentative Order becoming final pursuant to the provisions of Ordering Paragraph No. 3, a CPC be issued to White Rock approving its abandonment of water service to the public (A-213440F2000).
7. Upon this Tentative Order becoming final pursuant to the provisions or Ordering Paragraph No. 3, a CPC be issued to Suburban approving its partial abandonment of water service in South Middleton Township, Cumberland County (A-210104F2002).
8. Suburban file a tariff supplement reflecting this partial abandonment after the CPC is issued.
9. A copy of this Tentative Order shall be served on the Department of Environmental Protection, Southeast Regional Office, the Department of Revenue, Bureau of Corporate Taxes and the Commission's Office of Trial Staff.
10. Suburban provide the Bureau of Fixed Utility Services and the Bureau of Audits of this Commission with an original cost study, reflecting contribution-in-aid-of-construction, prior to the filing of its next general rate proceeding.
11. White Rock be deleted from the active utility lists of the Tariff and Annual Report Section of the Secretary's Bureau and the Assessment Section of the Bureau of Administrative Services after the CPC is issued.
12. Upon verification of closing, the Secretary shall mark all records closed.
JAMES J. MCNULTY,
Secretary
[Pa.B. Doc. No. 02-1926. Filed for public inspection October 25, 2002, 9:00 a.m.]
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