A beleaguered rural water company in Pennsylvania, Rock Spring Water Co., faces a potential municipal takeover as its legal team seeks to expedite a sale and avoid a lengthy regulatory process. The company has been grappling with significant infrastructure issues, regulatory violations, and financial penalties.
A beleaguered rural water company in Pennsylvania , currently under scrutiny by state regulators, is facing a new legal challenge from its own legal representatives. The attorneys, hired by owner Robert Campbell, are petitioning a Centre County court to transfer interim control to the State College Borough Water Authority , aiming to expedite a sale and avoid a protracted regulatory takeover process. The company, Rock Spring Water Co.
, has been grappling with a multitude of issues, including a substantial backlog of repairs estimated at $13.5 million, regulatory violations, and hefty unpaid civil penalties stemming from an ongoing dispute with the Department of Environmental Protection over excessive water loss. \Campbell's attorneys, James Bryant and Carolyn Larrabee, argue that the company, originally established after World War II to serve farmers, is ill-equipped to handle the demands of a rapidly developing area. Larrabee emphasizes that the current situation is not sustainable and that a sale to a more robust public utility is the most viable solution, offering relief for both Campbell and the company's customers. \The legal team has initiated an emergency petition requesting the court's intervention to allow the State College water authority to assume operational control while they negotiate a formal sales agreement. A hearing is scheduled for January 24th to address Campbell's potential objections. The water authority has expressed a strong interest in acquiring Rock Spring, having previously engaged in discussions with the company's owners in 2008. However, concerns regarding the financial implications of taking over the aging infrastructure had led to a withdrawal of the offer at the time. To mitigate potential rate increases for customers, local officials have pledged to explore grant and loan opportunities to finance the necessary repairs should the acquisition proceed successfully. \The water authority's aspirations to acquire Rock Spring face competition from investor-owned companies, such as Pennsylvania American Water, which have also been identified as potential buyers. Brian Heiser, the water authority's executive director, maintains that the local entity is best positioned to serve the needs of Rock Spring's customer base. Meanwhile, state-level investigations into the company's operations are ongoing, with the Bureau of Investigation and Enforcement, a division within the Pennsylvania Public Utility Commission, actively gathering evidence and preparing its case
Rock Spring Water Co. Pennsylvania State College Borough Water Authority Municipal Takeover Regulatory Scrutiny Water Infrastructure Pennsylvania Public Utility Commission
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