Elizabeth Borough: Municipal authority hears details of possible purchase

By Christine Haines

chaines@yourmvi.com

Pennsylvania American Water is interested in purchasing the Elizabeth Borough Municipal Authority.

Representatives of the company pitched the idea to the authority board Tuesday, a month after making a similar pitch to the Elizabeth Borough council.

“In communities where we provide the water, it provides a lot of synergy if we also treat the wastewater,” said Don Wieczenski, senior manager of business development for the Mid Atlantic Division of American Water, the parent company of Pennsylvania American.

Wieczenski said the company owns wastewater treatment plants throughout Western Pennsylvania, with the nearest to Elizabeth being the plant in McKeesport, where some waste from Elizabeth Township is already being treated.

“We’re implementing a law called Act 12,” Wieczenski said. “Act 12 allows us to pay fair market value for an asset. Your accountant may depreciate your plant every year. Instead of paying book value, we can pay you fair market value.”

Authority member William Boucher questioned whether the municipal authority was the correct entity to ask about the sale.

“Doesn’t the borough have the power to sell the municipal authority to the utility?” he asked.

Authority member James Lesniewiski Sr., a representative from Elizabeth Township, voiced concerns regarding rates if the authority is sold to a for-profit company. 

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