Chester’s path out of bankruptcy could depend on how the Pennsylvania Supreme Court answers the $400 million question of who owns the city’s water, writes Anthony R. Wood for The Philadelphia Inquirer.
The court heard arguments Wednesday over who owns the Chester Water Authority and who has the right to sell it.
Chester city attorney Matthew White said state law gives the city control over the water assets.
Chester Water Authority attorney Kevin Kent countered that only a minority of the authority’s customers are in Chester and that the entity falls under “multiple jurisdictions.”
He wants a 2021 Commonwealth Court ruling overturned declaring that the authority was solely owned by Chester and was free to sell it.
Aqua has offered to buy the authority for $410 million, about six times the city’s annual budget.
Chester’s state-appointed receiver, Michael Doweary, opposed the Aqua sale and instead wanted to create a public regional water organization combining the authority with two other water treatment operations.
The city would benefit from assets generated by the regional organization. Its treasury currently receives no revenue from authority operations.
The Pennsylvania Supreme Court said it will take the case under advisement.
Find out more about the Pennsylvania Supreme Court case in The Philadelphia Inquirer.
