PA Environment Digest Blog: The Derrick: Are Rate Increases In The Future For Rhodes Estate Water Companies In Venango County? [Impacts Continue From Conventional Oil Well Wastewater Contamination Of Water Supply]

On July 19, 2024, The Derrick published an update on events surrounding the Public Utility Commission’s proceeding on whether to order another water company to take over one or more of seven small water and wastewater companies when a spring serving as a source of water for the Venango Water Company and the Village of Reno was contaminated by a conventional oil well wastewater spill on July 19, 2023.

At a Public Utility Commission pre-hearing on July 15, the possibility of rate increases for the Rhodes Estate water companies was raised by a lawyer representing the operators of the water systems Randall and Kevin Rhodes because of their “financial straits.”

Judge Mark A. Hoyer held the pre-hearing as part of a proceeding to determine whether to order another public utility to acquire the Venango Water Company and six other water companies associated with the Blaine Edwin Rhodes Estate.

“I'm concerned about the consumers, and the water service and the wastewater service that they get while this matter is pending,” said Judge Hoyer. “Are you aware of any current issues or foreseeable issues here in the next several months that we should be talking about now to make sure that service and safety are a priority?”

Joseph Ferguson, the attorney representing Randal and Kevin Rhodes at the pre-hearing, said, “My clients have related to me that they have some concerns with the finances of the companies.

“They have some testing that's coming up, some required testing, and they have not had a rate increase in about 10 years. And so they are in financial straits as far as that goes.

“I'm not certain if they're able to request a rate increase, because of the pending issues here, though recently, that would help them,” said Ferguson.

Nick Maskrey, the attorney representing the Department of Environmental Protection told the judge he was not aware of any water testing or safety or service issues at the water companies.

Contacted after the hearing about Ferguson’s comments, DEP Northwest Regional Office spokesperson Thomas Decker, said, “Like all permittees, DEP expects that the operators of these water and wastewater facilities will conduct the required testing on time.

“If they cannot comply, DEP will consider what options are available to it to secure compliance and get the testing done,” said Decker.

He added the operators did not say what testing they were concerned about and DEP has not had any conversations with them about this issue.

Since the Venango Water Company is being operated by Aqua Pennsylvania under a receivership order from the PUC, Decker said, “DEP expects Aqua will take measures to ensure that all required testing is done.”

The six other companies associated with the Rhodes Estate include the Sugar Creek Water Company, West Hickory Water Company, Plumer Water Company, Fryburg Water Company, Cooperstown Water Company and Blaine E. Rhodes Sewer Company.

Judge Hoyer set a schedule for the proceeding in a May 28 order that requires requests for information from participating parties and written testimony be completed by October 16 with formal hearings on the case October 23 and 24.

The PUC investigation was started in March based on statements by Randall and Kevin Rhodes that they no longer want to be the certified operators for any of the water companies after an oil well wastewater spill contaminated one of the sources of water for the Venango Water Company in July 2023.

The spill resulted in a “do not consume” water advisory in the Village of Reno that lasted six weeks and an emergency order from the PUC to Aqua Pennsylvania to operate the Venango Water Company.

Documents related to this proceeding can be found at PUC Docket No. M-2023-3042180 and I-2023-3042312.

Visit the Aqua Pennsylvania Village of Reno Customers webpage for more information on the Venango Water company receivership.

Visit DEP’s Venango Water Company/Petro Erie, Inc. webpage to learn more about the actions taken by DEP.

NewsClip:

-- The Derrick: Several Topics Raised At PUC Hearing Involving Rhodes Water Companies

Related Articles - Village Of Reno Water Contamination:

-- The Derrick: PUC To Hold Second Hearing July 15 On Venango Water Company [Impacts Continue From Conventional Oil Well Wastewater Contamination Of Water Supply] [PaEN]

-- The Derrick: PUC Judge Orders 7 Rhodes Estate Water Companies To Secure Counsel For Hearings On Their Future [More Fallout From Conventional Oil Well Wastewater Spill In Venango County] [PaEN]

-- The Derrick: PUC To Hold May 21 Prehearing On Future Of Venango Water Company; Water Source Contaminated By Conventional Oil Well Wastewater Spill [PaEN]

-- The Derrick: State Intervenes In Venango Water Case [Fallout Continues From Conventional Oil Well Wastewater Spill] [PaEN]

-- The Derrick: Public Utility Commission Starts Investigation Into Possible Order For Another Utility To Permanently Acquire Venango Water Company Impacted By Conventional Oil Well Spill [PaEN]

-- The Derrick: Aqua Pennsylvania Continues To Operate The Water System Serving The Village Of Reno After A Conventional Well Wastewater Release Contaminated Its Water Supply Last July In Venango County [PaEN]