NOTICES
Tentative Order
[32 Pa.B. 5372] 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
Application of Pennsylvania Suburban Water Company for approval of: 1) the acquisition by Pennsylvania Suburban Water Company of water system assets of D.L.W.B Water Systems, Inc.; 2) the right of Pennsylvania Suburban Water Company to offer, render, furnish or supply water service to the public in portions of Deer Lake Borough and West Brunswick Township, Schuylkill County, Pennsylvania; Doc. No. A-210104F0018
Tentative Order By the Commission:
On June 19, 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, filed an Application for Commission approval of Suburban to acquire D.L.W.B. Water Systems, Inc.'s (DLWB) assets and to begin the right to offer, render, furnish or supply water service to the public in portions of Deer Lake Borough and West Brunswick Township in Schuylkill County, Pennsylvania as shown on a map filed with the Application.
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.
DLWB provides water service to approximately 30 residential homes in an area locally known as ''The Pines.'' At full grow-out, The Pines will contain 97 homes. DLWB avers it does not want to enter the water business and wants to sell its water system. The Department of Environmental Protection reports that there are no outstanding complaints or actions against DLWB.
Suburban has entered into an Assets Purchase Agreement with DLWB and its parent, Pine Hollow Development Corporation, Inc. (Pine Hollow). Negotiations were conducted at arm's length and the agreed price will be $150,000 for the current in-place assets. These assets include one well along with associated pumping/electrical equipment and building, two water storage tanks with atotal capacity of 136,000 gallons, mains, residential meters, valves and permits. Suburban will use a short term loan from their established $70 million line of credit.
Furthermore, Suburban and Pine Hollow will enter into Suburban's standard Builder's Extension Agreement for the remaining 67 lots to be developed. The developer will lay the mains and contribute them to the utility. This agreement will activate upon closing of the previous transaction. Deer Lakes Municipal Authority provides wastewater service to the development.
DLWB has not charged rates to its 30 existing customers. Suburban proposes to adopt its Main System rates that are currently approved by the Commission. A typical customer, using 60,000 gallons per year, will experience an annual cost of $526.20.
Upon full consideration of all matters of record, we find that approval of this Application is necessary and proper for the service, accommodation and convenience of the public. For these reasons, we tentatively conclude that approval of the application is in the public interest; Therefore,
It Is Ordered That:
1. The Application of Pennsylvania Suburban Water Company (Suburban) at Docket No. A-210104F0018 is hereby tentatively approved as in the public interest.
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 to Pennsylvania Suburban Water Company a Certificate of Public Convenience 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 Deer Lake Borough and West Brunswick Township, Schuylkill County, Pennsylvania.
5. Suburban shall file a tariff supplement within 30 days of closing reflecting this transaction and shall provide verification of said closing to the Commission.
6. Nothing herein shall be construed to exempt Suburban from obtaining all necessary permits and approvals from other State, Federal and local government agencies having jurisdiction.
7. A copy of this Tentative Order shall be served on the Department of Environmental Protection, Northeast Regional Office and the Commission's Office of Trial Staff.
8. 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.
9. Upon verification of closing, the Secretary shall mark the record closed.
JAMES J. MCNULTY,
Secretary
[Pa.B. Doc. No. 02-1924. Filed for public inspection October 25, 2002, 9:00 a.m.]
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