Sale of Sutersville-Sewickley sewer system awaits state approval

A $3.25 million deal to sell the Sutersville-Sewickley Sewage Authority is awaiting approval from the Pennsylvania Public Utility Commission.

Authority chairman Bruce Riley confirmed Friday a deal was reached this spring for Pennsylvania-American Water Co. to purchase the small system’s infrastructure and provide service to nearly 500 customers.

“It needs a significant investment to keep it going. This deal is a way to get it into the hands of people who can operate it,” Riley said.

The authority operates a system that collects sewage and transports it across the Youghiogheny River to connect with another system in Elizabeth. Sewage then is piped to a treatment plant, operated by Pennsylvania-American, in McKeesport.

The deal, which the authority approved in April, will turn over the system’s sewer lines and customer base to the private company. Proceeds from the sale will be used by the authority to pay off about $2.5 million in state loans used previously to upgrade the system.

“Our intent is to give the rest of the money back to our customers. We don’t know how that will work,” Riley said.

Riley said rates will initially remain unchanged in the deal, but the sales agreement includes no provisions barring future rate hikes.

Pennsylvania-American agreed to a package of $760,000 in upgrades to the sewer system over a 5-year period.

The deal is contingent on PUC approval.

Pennsylvania-American anticipates PUC approval by the middle of next year.

“We believe the customers of the Sutersville-Sewickley system will greatly benefit from our customer assistance grants and discounts that will be offered,” company spokesman Brent Robinson wrote in an emailed statement.

Riley said the Municipal Authority of Westmoreland County was approached about a potential sale, but no offer was made.

MAWC manager Michael Kukura on Friday confirmed the county agency had no interest in acquiring the Sutersville-Sewickley system.

“We couldn’t find a way to divert the flows away from Elizabeth, so it just wasn’t a fit for us,” Kukura said.

MAWC finalized a $13 million deal in 2018 to acquire the Sewickley Township Municipal Authority, which served 1,400 sewer customers in the Herminie and Hutchinson sections of the township.