State Supreme Court Ruling Sends Shockwave Through Chester Water Authority Sale Efforts
A contentious court battle over the financial future of the city of Chester's water authority came to a halt on Wednesday, with the Pennsylvania Supreme Court delivering a decisive 5-1 ruling that blocks the sale of the cash-strapped entity to a for-profit company.
In the closely watched case, the justices ruled that the transfer of the authority's assets to the city government must be approved by all three governing municipalities – a major setback for efforts to privatize the water utility. The decision affirms that the authority belongs to its customers, not politicians or private interests, according to CWA Board Chairperson Noël Brandon.
The ruling is significant not only for Chester but also for similar cases across Pennsylvania. Justice Christine Donohue's majority opinion notes that the lower Commonwealth Court erred in allowing the city to seize the authority's assets without proper approval. The court's decision underscores the importance of public ownership and sets a precedent for protecting the interests of consumers.
The controversy surrounding Act 12, passed by then-Gov. Tom Wolf in 2016, has drawn widespread criticism from consumer advocates. Critics argue that the law has led to soaring water and sewer bills for hundreds of thousands of customers across the state. The case highlights ongoing debates over the role of privatization in municipal services.
Chester's financial woes have been well-documented, with the city filing for Chapter 9 bankruptcy in 2022. Court-appointed Receiver Vijay Kapoor had sought to amend the city's recovery plan to address issues related to the authority's ownership and rate hikes. The Supreme Court's ruling may send shockwaves through efforts to sell the water authority, given that several CWA board members with terms set to expire next year have expressed opposition to privatization.
The Chester Water Authority has a complex history, dating back to 1939 when it was established by the city to provide water from the Delaware River. Over time, the authority expanded its services to supply around 200,000 people in suburban Philadelphia counties. The board is currently composed of members appointed by the three governing municipalities.
The decision will likely have far-reaching implications for municipal services across Pennsylvania and underscores the need for continued debate over the balance between public ownership and privatization.
A contentious court battle over the financial future of the city of Chester's water authority came to a halt on Wednesday, with the Pennsylvania Supreme Court delivering a decisive 5-1 ruling that blocks the sale of the cash-strapped entity to a for-profit company.
In the closely watched case, the justices ruled that the transfer of the authority's assets to the city government must be approved by all three governing municipalities – a major setback for efforts to privatize the water utility. The decision affirms that the authority belongs to its customers, not politicians or private interests, according to CWA Board Chairperson Noël Brandon.
The ruling is significant not only for Chester but also for similar cases across Pennsylvania. Justice Christine Donohue's majority opinion notes that the lower Commonwealth Court erred in allowing the city to seize the authority's assets without proper approval. The court's decision underscores the importance of public ownership and sets a precedent for protecting the interests of consumers.
The controversy surrounding Act 12, passed by then-Gov. Tom Wolf in 2016, has drawn widespread criticism from consumer advocates. Critics argue that the law has led to soaring water and sewer bills for hundreds of thousands of customers across the state. The case highlights ongoing debates over the role of privatization in municipal services.
Chester's financial woes have been well-documented, with the city filing for Chapter 9 bankruptcy in 2022. Court-appointed Receiver Vijay Kapoor had sought to amend the city's recovery plan to address issues related to the authority's ownership and rate hikes. The Supreme Court's ruling may send shockwaves through efforts to sell the water authority, given that several CWA board members with terms set to expire next year have expressed opposition to privatization.
The Chester Water Authority has a complex history, dating back to 1939 when it was established by the city to provide water from the Delaware River. Over time, the authority expanded its services to supply around 200,000 people in suburban Philadelphia counties. The board is currently composed of members appointed by the three governing municipalities.
The decision will likely have far-reaching implications for municipal services across Pennsylvania and underscores the need for continued debate over the balance between public ownership and privatization.
. I mean, come on, it's been clear that the water authority is struggling financially and someone needs to step in to help. Instead of trying to sell it off to some for-profit company that only cares about making a quick buck, shouldn't we be focusing on finding sustainable solutions? The fact that the court had to step in just shows how broken our system is 
. And what really gets me is that politicians are always talking about "protecting consumers" but when it comes down to it, they're only looking out for themselves 
. Can't we just get some common sense and work together to fix this problem? 
. I mean, can you imagine a private company profiting off people's basic needs like clean water? Not cool, man 
. The fact that the court ruled in favor of public ownership is huge, though! It's like, we should be looking out for ourselves and not just lining the pockets of corporate suits 
.
. Let's hope our elected officials start listening to what we want instead of just doing what's convenient for them 
.
. It's wild to think that a bunch of politicians tried to sell off something as essential as our water supply to some big corporation 
. I mean, what's next? Selling off our schools or hospitals? 
The fact that the court ruled that the authority belongs to its customers, not politicians or private interests, is a major win for us common people 
. It's crazy how much power these corporate bigwigs think they have over our lives 
Anyway, kudos to the CWA board chairperson Noël Brandon for speaking truth to power 
.
. Now, let's get real – how many more cities are gonna file for bankruptcy because they can't deal with the privatization nightmare?
the idea that the authority belongs to its customers, not politicians or private interests, is a great principle, but let's be real, how many times have we seen politicians prioritize profits over people? 
. i guess it's a good thing that justice won out in the end... now we'll just have to wait and see if other cities try to follow suit 
not just lining the pockets of wealthy elites 
this ruling sets a precedent for public ownership and it's about bloody time someone stood up for us as consumers 
. It just goes to show that our politicians are supposed to be working for us, not lining their pockets with corporate cash. And can we talk about how long this authority has been around? Like, 1939?! That's even older than my grandma 
. Like, who wants their water service sold to some faceless corp? Not me, that's for sure! The fact that a 5-1 ruling blocks the sale is a total win for us ordinary folks who care about keeping our city's services public. And let's be real, Act 12 was basically just a fancy way of saying "we're gonna make you pay more for your water". I'm all about keeping those rates low and making sure the people in charge are answerable to the community, not some CEO looking for a quick buck 
.
those water and sewer bills are already outrageous enough without the threat of privatization looming over everyone's head. I'm not surprised the court ruled against it, but it's just another indication that our politicians aren't looking out for us... sigh