Chester Water Authority pushes back against Aqua America

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Aqua made an unsolicited $250 million offer to purchase Chester Water Authority in May, which the Chester water board unanimously rejected. (Image courtesy chesterwater.com)

Joe Stafford’s T-shirt is emphatic: “No way, Aqua. No means No. What part of No don’t you understand?”

The Upper Chichester resident and other customers of the Chester Water Authority have joined employees at the low-cost public utility’s recent board meetings to protest for-profit, publicly traded Aqua America of Bryn Mawr’s persistent proposal to buy their utility. Aqua made an unsolicited $250 million offer (plus $70 million in debt assumption) in May, which the Chester Water board unanimously rejected. The board includes three members each from Chester City and Delaware and Chester Counties, where it serves 44,000 residential and business customers and 200,000 users, writes Joseph DeStefano for philly.com.

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“This company is a predator,” water customer Joe DiMarco said at Tuesday’s authority board meeting at Neumann College in Aston. He cited rate hikes and profit margins Aqua has requested  and gotten  from the Pennsylvania Public Utility Commission in other towns where it has taken over water systems.

Aqua typically charges more than 40 percent above what Chester Water charges customers in nearby towns, according to rate data collected by the authority.

“The deal, previously thought dead, has new life,” utility analyst Ryan M. Connors wrote last week in a report to investor clients of Boenning & Scattergood in West Conshohocken after Aqua raised the offer anew at a meeting earlier this month. To sweeten its offer, Aqua has taken out full-page ads in local newspapers promising to keep water rates at today’s levels for 10 years and to offer Chester Water workers jobs if it is able to privatize the authority.

To read the complete story click here. 

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