Aqua Pennsylvania has notified the Public Utility Commission it has reached a “settlement in principle” with the Rhodes Estate and Randal and Kevin Rhodes to purchase the Venango Water Company and other water systems owned by the Rhodes Estate.
The notification was included in a February 3 status report by Aqua to the PUC on its temporary operation of the seven Rhodes water systems under emergency receivership orders issued by the Commission dating back to August 11, 2023.
The Rhodes Estate water systems include--
-- Venango Water Company, Venango County
-- Sugarcreek Water Company, Sugarcreek Boro, Venango County
-- West Hickory Water Company, Harmony Twp., Forest County
-- Plumer Water Company, Cornplanter Twp., Venango County
-- Fryburg Water Company, Pinegrove Twp., Venango County; Washington Twp., Clarion County
-- Cooperstown Water Company, Cooperstown Boro & Jackson Twp., Venango County
-- Blaine E. Rhodes Sewer Company, Sugarcreek Boro, Venango County.
Aqua Pennsylvania was ordered to take over operation of the Venango Water Company after a July 2023 spill of conventional oil well wastewater from wells owned by Petro Erie, Inc. that contaminated Bellows Spring, one of two water resources used by the company to serve the Village of Reno, according to the Department of Environmental Protection.
[The circumstances surrounding this spill have been the subject of a criminal investigation by the state Office of Attorney General since March 2025. Read more here.]
Randall and Kevin Rhodes then announced they were resigning as operators of all the Rhodes Estate water companies and the PUC ordered Aqua to temporarily operate those systems so customers could continue receiving water service.
The February 3 report says Aqua Pennsylvania originally notified PUC Administrative Law Judge Mark J. Hoyer of the settlement on August 1, 2025.
Aqua explained that “for various reasons, the parties have not yet been able to finalize all of the necessary documents required for submission of the settlement to the ALJ and the Commission for review.”
Some of those reasons included “the September announcement of the proposed merger of Aqua’s parent, Essential Utilities, Inc. with American Water and the ensuing end-of-year holidays,” according to the report.
Aqua said it “continues to work diligently with the parties to finalize the sale-related documents, along with the settlement documents, for filing with the Commission.”
Contacted for this story, Aqua Pennsylvania said, “We don’t have any comment currently.”
Judge Hoyer has been handling the formal proceeding to determine the future ownership and management of the Rhodes water systems since March 20, 2024.
Last March, Judge Hoyer urged the parties to “seriously explore” a settlement in which Aqua Pennsylvania or another entity would take over ownership and operation of the water companies without the need for further litigation. [Read more here.]
After Judge Hoyer receives and reviews the settlement documents from Aqua Pennsylvania, he will then decide what comes next in the proceeding.
Aqua Pennsylvania will continue to operate Venango Water Company and the six other Rhodes Estate water systems and make improvements and repairs where necessary to provide customers with drinking and wastewater services under the temporary receivership orders issued by the PUC.
In a status report to the PUC last July, Aqua said the Venango Water Company and the six other Rhodes Estate water systems need more than $5.5 million in capital improvements over the next three years to meet state regulations. [Read more here.]
These capital costs are in addition to the ongoing operational and repair costs already incurred by Aqua Pennsylvania in running the systems which will be recovered from water system customers in the future rate cases considered by the Public Utility Commission.
(Photos: Top- Petro Erie, Inc. Reno conventional well wastewater spill; Bottom- Aqua Pennsylvania hauling water to Venango Water Company to make up losses from contaminated spring.)
NewsClip:
-- The Derrick: Aqua Pennsylvania Reaches Settlement To Buy Venango Water Company [PDF of Article]
Resource Links - Conventional Wastewater Spill:
-- DEP Investigates Conventional Oil Well Wastewater Leak As Possible Source Of Village Of Reno Water Supply Contamination In Venango County; Customers Under Do Not Consume Advisory For 2+ Weeks [8.5.23]
-- The Derrick: DEP Issues Order To Petro Erie, Inc. To Restore Village Of Reno Water System, Cleanup Contamination Caused By Its Conventional Well Wastewater Release; 1 Month Without Clean Water [8.19.23]
-- 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 [3.12.24]
-- The Derrick: PUC Judge Issues Emergency Order Appointing Aqua Pennsylvania As Temporary Operator For 6 Rhodes Estate Water Companies [Serious Community Impacts Continue From Conventional Oil Well Spill In Venango County] [10.19.24]
-- The Derrick: State Attorney General Launches Criminal Investigation Into Conventional Oil Well Wastewater Spill That Contaminated Venango Water Company Spring [3.8.25]
-- The Derrick: Aqua Pennsylvania Details $5.5 Million Upgrade Costs For Rhodes Estates Water Systems In Venango County Area; Fallout Continues From Conventional Oil Well Wastewater Spill [7.10.25]
-- The Derrick: Aqua PA Spells Out Venango Water Co. Expenses Since Its PUC-Ordered Emergency Role [Conventional Oil Well Wastewater Spill Cost Water Customers $900,000, So Far, In Venango County] [2.22.25]
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[Posted: February 12, 2026] PA Environment Digest
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