PUC Finalizes Long-Term Plan To Ensure Stable Water Service For Rock Spring Water Company Thru Its Acquisition By PA American Water In Centre County

On June 4, the Public Utility Commission finalized a long-term solution for the Rock Spring Water Company (Rock Spring) in Centre County, through its acquisition by Pennsylvania American Water Company, as part of the Commission’s ongoing efforts to ensure safe and reliable water service for approximately 1,000 households served by the system.

PAWC has overseen Rock Spring’s operations since March 2025, when the Commission appointed the company as receiver to maintain service and support the development of a long-term resolution.

The Commission voted 5-0 to adopt the Recommended Decision of PUC Administrative Law Judge John M. Coogan--  which was issued on Feb. 18, 2026, and concluded that acquisition of Rock Spring by PAWC is in the public interest and supported by the record developed in this proceeding. 

The two companies now have three months from the entry date of today’s PUC Order to complete an Asset Purchase Agreement.

"This action provides a clear path forward for customers who depend on this system every day," said PUC Chairman Steve DeFrank. "The Commission's priority throughout this proceeding has been maintaining safe and reliable water service while working toward a long-term solution that provides stability for the future."

Under the framework, Rock Spring would be incorporated into PAWC’s existing tariff as a separate Rock Spring division and supported through PAWC’s established operations in the region.

History of the Proceeding

In response to longstanding operational and service concerns involving Rock Spring, on Sept. 20, 2024, the PUC’s independent Bureau of Investigation and Enforcement (I&E) requested that the Commission open a Section 529 Investigation into the acquisition of Rock Spring-- with multiple state agencies, local stakeholders, and interested parties participating in the proceeding.

On Feb. 20, 2025, Judge Coogan issued an Order granting an Interim Emergency Petition filed by the state’s consumer advocate to appoint a receiver for Rock Spring, which was subsequently adopted by the Commission.  

The Commission further directed Rock Spring to negotiate in earnest for the sale and transfer of its water system as part of a long-term solution for customers.  

The Commission appointed PAWC as receiver to ensure the continued provision of safe and reliable water service while a permanent solution was developed. 

Since that appointment, PAWC has managed day-to-day operations of the system under Commission oversight.

Documents related to this case are available at PUC Docket No.: P-2024-3051313.

Click Here for a copy of the PUC announcement.

[Posted: June 4, 2026]  PA Environment Digest