Pennsylvania
‘Who does the world’s water belong to?’ Pa. Senate committee holds privatization hearing
At a Senate Democratic Policy Committee hearing Monday in West Whiteland Township, Chester County, two panels of advocates, experts, and impacted residents debated Act 12’s impact on skyrocketing rate hikes and discussed legislative changes to remedy the situation.
“The fight we’ve been involved in here in southeastern Pennsylvania ultimately revolves around one fundamental question,” said David McMahon, of Neighbor’s Opposing Privatization Efforts (NOPE), to a full room of spectators. “Who does the world’s water belong to?”
McMahon said Act 12 has made it too easy to take what was once a public resource, and put it in the hands of profit-making companies.
Suburban Philadelphia is a hot spot for water privatization including Aqua Pennsylvania’s takeover of Willistown Township’s sewer system in 2022 and Pennsylvania American Water’s acquisition of Upper Pottsgrove’s wastewater system in 2020. The trend spans state lines, and more than two dozen public water suppliers have been bought by investor-owned utilities across the region in the past five years.
Soon after the passage of Pennsylvania’s Act 12 in 2016, the Bryn Mawr-based Aqua, which owns water companies nationwide, purchased water systems in Cheltenham and Limerick, among other places.
The Pennsylvania Public Utility Commission has approved 22 acquisitions since the law’s passage. Advocates and lawmakers alike believe the subsequent spending spree to be no accident.
“Act 12 of 2016 made significant changes to the way water and wastewater systems are valued for acquisition,” said state Sen. Katie Muth, chair of the Pennsylvania Senate Democratic Policy Committee at the hearing.
In written testimony to the legislators, Aqua Pennsylvania President Marc Lucca defended the company’s practices, saying it has learned a lot since Act 12 was adopted.
“We’ve heard concerns around the impact of purchase price on customer rates, transparency of the sale process, and ensuring that terms of contracts are met. To be clear, we stand ready to work to address those issues,” Lucca said.
However, Lucca rejected any notion that Act 12 should be repealed, arguing that municipality owned water utilities do not have the funds to update their aging systems.
“In summary, our nation’s infrastructure is failing because of lack of investment. We are leaving the next generation a significant problem they need to address simply because we did not. The condition of these systems occurred long before Act 12 so I simply do not agree with the sentiment that removing it will correct these problems,” Lucca said.
Public resource vs. private commodity
Bill Ferguson, a co-founder of Keep Water Affordable and a New Garden Township resident, testified that private water companies exist to expand and increase profits.
He acknowledged that’s what corporations do.
“Our issue is with their methods used to acquire the municipal utilities, [which is] required to realize that growth,” said Ferguson. “Then there’s the municipal governments, too often infatuated by the seductive siren song of a huge candy jar of money — free money. It’s like winning the lottery but that money is in no way free. The failure of local government to properly serve their citizens is probably our biggest concern.”
He said ratepayers are paying for “Big Water’s” profits and deals. He likened the publicly owned water acquisitions to offering a car dealership $80,000 for a vehicle they’re selling for $40,000.
”That’s what’s happening under Act 12. Both parties at the negotiating table want the highest price possible. You’d ask why would Big Water want to pay higher prices? It’s simple. The more they pay, the higher their profits, as long as the purchase price goes into the rate base. And that’s what Act 12 enables. It enables the increase in rate base. The water companies cannot lose. It is one sweet deal for them,” Ferguson said.
Anthony Bellitto, executive director of the publicly owned North Penn Water Authority and a representative with the Pennsylvania Municipal Authorities Association (PMAA), said the PMAA’s stance is that Act 12 should be repealed.
In the case that it is not repealed, Bellitto said the organization suggests Act 12 be amended to include a voter referendum and a scope limitation to distressed municipalities.
Bellitto said any assertion that low rates equals infrastructure disinvestment is false.
“We’re a nonprofit,” Bellitto said.We provide low cost and high value to our customers. At North Penn Water Authority, our average customer spends $1 per day for all the water for a household.”
Bellitto criticized the for-profit business model in public utilities due to the high salaries of top executives.
“My entire organization of North Penn Water Authority — 52 employees. Our whole aggregate salary is four and a half million dollars. There you go. You got the whole company doing all the work every day, 52 employees making the same amount of money as the top guy at Aqua. This is why they have to raise the rates,” he said.
“This aggressive push to privatize municipal systems is driven by an upper management of these private utilities who are motivated by their own personal financial benefit,” Bellitto said.
But not everyone who testified wants to kill Act 12.
In some municipalities that have garnered the interest of private water companies — like Chester and Towamencin, residents have gone on the offensive to block the deals, oftentimes clashing with elected leaders. Results, however, have been mixed.
Kofe Osei, an organizer with NOPE and a newly elected Towamencin Township Supervisor, said privatization efforts have had a negative impact on democracy. He said Pennsylvania American Water’s attempt to purchase Towamencin’s sewer system, which is tied up in court, has laid bare issues of the state’s referendum laws.
“Even in the face of lawsuits from residents to compel the township to exit the sale, the pro-sale supervisors have committed public dollars in our budget to defending their clearly unpopular decision in court,” Osei said.
The boat dock at the entrance of Penn’s Cave.
HUNTER SMITH / THE EXPRESS
HUNTER SMITH / THE EXPRESS
The colored light room in Penn’s Cave.
BELLEFONTE — After four generations of family stewardship, the owners of Penn’s Cave and Wildlife Park are asking the state to take over one of Centre County’s most iconic attractions in an effort to preserve it from future development.
Following remarks from CEO Russ Schleiden and his daughter, Jeanine Watson, the Centre County Commissioners on Tuesday endorsed the plan to make the natural wonder Pennsylvania’s 126th state park.
“This has been a very difficult decision for us,” said Schleiden. “But we feel that it’s a very important part of, not only Centre County, but the Commonwealth of Pennsylvania, and that it should be preserved in perpetuity.”
The Schleiden family has spent decades as custodians of America’s only all-water, limestone cavern, working to expand and conserve Penn’s Cave, which contains the headwaters of Penn’s Creek. To ensure the 1,400 acres of land and its waters are around for generations to come, the family is petitioning the Pennsylvania Department of Conservation and Natural Resources (DCNR) to designate the Penn’s Cave estate a state park and take over its stewardship.
The proposed transfer includes the cavern, Cave House, surrounding land and waterways, five homes and several barns. Watson said the family has been working toward the proposal for three years.
“I know the state, DCNR, has wonderful plans and visions for enhancing it and taking it to that next level beyond what we could do,” she said.
Penn’s Creek, which starts in the cavern, flows 34 miles to Selinsgrove where it joins the Susquehanna River Basin before emptying into the Chesapeake. The state has made significant investments in protecting those waters, and the proposed transition would expand that work.
“The tributaries also support the native brook trout,” said Schleiden, naming specifically Little Poe and Big Poe creeks, which are known for their fishing.
Penn’s Cave, he said, has always been supportive of “wildlife for everyone.”
With the commissioners’ help, Penn’s Cave and Wildlife Park has invested $2 million into the local wetlands, protecting local fauna while improving the area’s accessibility. Schleiden said transferring ownership to the state would ensure that mission remains central to the property.
“We strongly desire this to go to the state to protect and continue to conserve, and have it available to the public,” Watson said.
The property also carries historical significance. Penn’s Cave and Hotel was listed on the National Register of Historic Places in April 1978 for its local importance.
The Cave House, or hotel, was built in 1885 by the Long family, who first commercialized the cavern. At the time, visitors traversed the cave by boat using lanterns. That changed in 1927, when the Campbell family, who emigrated from Scotland to the land, electrified the cave.
“It probably had electricity before more than most of the local residents,” Schleiden said.
State Rep. Kerry Benninghoff, who helped coordinate with the state on the proposed transition, also joined the commissioners for the discussion.
Benninghoff said the move would require the endorsement of the governor and both chambers of the General Assembly. The governor is aware of the plan and visited the site last year, and Benninghoff said he has drafted legislation outlining the mechanics of the transition.
“I can’t think of a better time in our country and our county’s history, at the semiquincentennial, to make this a reality,” he said. “If you want to look at Americana in its best, the park I think exemplifies that.”
“In the long run, I think this is a tremendous investment for the commonwealth,” Benninghoff said, noting the transition would not be easy but the commissioners’ endorsement could help move the project forward during this budget cycle.
The proposal also carries potential economic benefits for the region.
Penn’s Cave and Wildlife Park already attracts visitors from all 50 states and several countries. During its peak season, the park employs dozens of local community members. The attraction is a multigenerational employer in Gregg Township, providing jobs for members of the Schleiden family and their employees, many of whom are young adults and teens.
Transferring ownership to DCNR and becoming Pennsylvania’s 126th state park could increase tourism and economic engagement in the area, the owners said. State parks in rural communities often bring tourism dollars and expand employment opportunities as operations grow.
Benninghoff said he could envision additional public amenities, including a campground, while emphasizing the property would remain accessible.
“This is not going to be an exclusive property that no one can access,” she said. “It’s actually one we want more people to enjoy.”
The commissioners each praised the work Schleiden and Watson have done and expressed support for the state park designation, citing the conservation, education, historical, tourism and recreational benefits of the proposal.
“Penn’s Cave is a premier tourist attraction in Centre County,” said Commissioner Mark Higgins, who noted it is one of only a few caves accessible by boat worldwide. “With the trout in the water and the wild animals surrounding it in the wildlife park, it’s a really, really fun half-day attraction to visit.”
“It’s just irreplaceable,” he said.
Commissioner Amber Concepcion called the property “an outstanding area of natural beauty” and added that it provides an opportunity for education and recreation.
“It’s a great place for kids to learn and for adults and people of all ages to spend a summer afternoon,” she said. “It would make a fantastic state park.”
Dershem called the opportunity “once in a lifetime” and said it would be a “crying shame” if the property were developed instead.
“This is an amazing opportunity for the Commonwealth of Pennsylvania to invest in a property that is literally irreplaceable, iconic to our region and unique. I don’t know that you’ll find anything quite like it,” Dershem said. “It’s an amazing place.”
Penn’s Cave, he added, “represents who we are in Centre County” and is “natural splendor at its best.”
Benninghoff said their support will emphasize the urgency of completing the transition to state legislators.
“This endorsement by the county, visitors bureau and other people helps to emphasize that we’d really like to get this done, and time is of the essence,” he said. “People have been knocking on their door, wanting to purchase this land and break it all apart, and a lot of it would go into development.”
STATE COLLEGE, Pa. (WJAC) — It was a strong opening day in State College for the 60th anniversary of the Central Pennsylvania Festival of the Arts.
The festival kicked off with the traditional children’s day festivities.
Kids lined South Allen Street, displaying and selling their latest creations.
6 News spoke with one of the young businessmen there — Trevor Winterich — who was busy with his 3D toys.
On Thursday, the festival’s sidewalk sales open, featuring artists and performers from across the country.
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The festival will then wrap up on Sunday.
Pennsylvania
Pennsylvania state trooper to be laid to rest after being fatally struck in Schuylkill County
BUTLER TWP., Pa. (WPVI) — A Pennsylvania State Trooper who was killed in a crash on Interstate 81 will be laid to rest Wednesday.
A public viewing for Trooper Michael Pahira, Jr., is scheduled from 8 a.m. to 10 a.m. at North Schuylkill High School in Butler Township.
A funeral will follow at 11 a.m.
Trooper Pahira was fatally struck on I-81 last week by a tractor-trailer while conducting a safety inspection on another truck in Cass Township, Schuylkill County.
According to state police, a passing commercial vehicle hit Pahira while he was conducting the inspection with his emergency lights activated.
The alleged driver, 33-year-old Michael Bon, is facing homicide charges. He is being held on $700,000 bail.
Pahira, 44, was assigned to Troop L, Frackville and had been with the state police for 20 years.
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