Could A Major Local Water & Sewer Authority Be Sold For $1 Billion?

Among those in the industry, the Bucks County Water and Sewer Authority is considered a crown jewel of public water and sewer systems. If sold in whole or in parts, it would be worth a pretty penny.

The authority is a public entity and chartered by Bucks County government.

Over the past several years and even very recently, for-profit utility companies have shown interest in purchasing the authority and made offers. At least one was in the neighborhood of $1 billion, sources have said.

The Bucks County Water and Sewer Authority confirmed to LevittownNow.com this week that they have been “presented with an initial sales proposal,” but declined to provide more information or announce who it was from.

“We have a fiduciary responsibility to thoroughly examine all details presented to us, ensuring that our customers, communities and partners always come first. This process included obtaining an assessment of our operations, services, assets, and other resources that are part of BCWSA and the communities we serve,” their statement said.

Brian Dries, a spokesman for the authority, said an assessment of the Bucks County Water and Sewer Authority’s system showed a value of $1.1 billion for the sewer system and $300 million for the water system.

He said there has been “no determination regarding a potential sale at this point.”

“We must maintain a position that allows us to explore all opportunities, while ensuring the maximum benefits for our customers and communities,” Dries said.

Since late 2021, rumors have swirled among some in local government about a possible sale of the system that serves 100,000 households and several bulk customers. Rumored interested parties have included for-profit firms Aqua Pennsylvania, which is owned by Essential Utilities, and Pennsylvania American Water.

Representatives for those companies did not respond to a request for comment.

The authority denied LevittownNow.com‘s public records request for documents related to any potential sale.

Confirmed details have been hard to come by, but talks have intensified in recent months, sources said.

“The Board has made no determination regarding a potential sale at this point, and we will share more details should the process advance,” Dries said.

In winter, the authority hired Ceisler Media and Issue Advocacy as a vendor. The firm handles public relations and issue advocacy and is politically connected in the state.

Some have seen the hire as an indication the authority needs pros to help shape the message if a sale moves forward.

The spokesperson for the authority quoted in this article is an employee of Ceisler Media and Issue Advocacy.

The spokesperson said the contract with the public relations and issue advocacy firm was similar to ones in the past.

“As we move further away from the pandemic and more activities and tasks resume again, the authority and board agreed it was time to engage with a firm to assist with our communications needs for all the operations and services we provide,” Dries said.

If a sale did happen, the profits would go to county government.

A spokesperson for the Bucks County Commissioners said they “have not received specific details on any such offers.”

“The Bucks County Board of Commissioners would not receive a request to approve an agreement of this kind unless first independently approved by the BCWSA,” said James O’Malley, a county spokesperson.

In late 2020, Aqua expressed interest to buy the Bucks County Water and Sewer Authority system, which is valued at $1.1 billion, according to a document obtained by this news organization.

Aqua noted their company and the authority shared borders and had worked on projects together over the years.

The 2020 offer suggested a “non-disclosure agreement” be signed during talks, consider hiring a public relations firm for messaging, and hold meetings on the sale.

Several people familiar with similar authorities and for-profit systems, like Aqua Pennsylvania’s, have said the purchase of a public authority by a for-profit company often leads to hikes in customer bills. There had been protest to a planned sale of Norristown, Montgomery County’s sewer system to Aqua, and the plan fell apart after public outcry.

Tom Tosti, a former Middletown Township supervisor and regional director of union American Federation of State and Municipal Employees (AFSCME), has raised the issue with municipalities served by the Bucks County Water and Sewer Authority.

He has asked elected officials to pass resolutions opposing any sale.

Tosti, who has union members who work for the authority, said the sale of the system would have a “detrimental impact” and likely increase the rates customers pay.

“This will be the biggest sale of any water authority in the country,” he said.

Tosti told Middletown Township officials at a public meeting recently rates will almost certainly go up for the township’s Bucks County Water and Sewer Authority customers if a sale to Aqua happens.

Pennsylvania’s Act 12 made it easier for authorities to sell to private firms and makes it easier for them to get more money for their system, according to WHYY.

The Bucks County Water and Sewer Authority was chartered by the county in the 1960s and services many municipalities in Bucks County and a handful in Montgomery and Chester counties.

In the Levittown-area, the authority serves customers in Hulmeville Borough, Langhorne Borough, Langhorne Manor Borough, Penndel Borough, and a portion of Middletown Township. It recently made a deal to buy Bristol Borough’s sewer system for $50 million.

Report a correction via email | Editorial standards and policies

---

---