By Gabbie Burton
Contributing Writer

Bankruptcy, legal battles and a potential $410 million sale.

If all you currently know about Save Chester Water Authority (CWA) is their blue lawn signs dotted across southern Chester County, you have some catching up to do.

On Oct. 9, the grassroots organization traveled to Harrisburg for what they billed as an action day at the Pennsylvania State Capitol, with supporters arriving in buses from both West Grove and the City of Chester. The lobbying agenda, attended by about 50 supporters from both Chester and Delaware counties, included meetings with legislators and staffers and a press conference in the rotunda of the Capitol Building. The purpose of the lobby day was to bring increased attention to the potential sale of the CWA by the City of Chester to Aqua Pennsylvania and to directly call on Pennsylvania Gov. Josh Shapiro to stop the City of Chester’s sale efforts.

“Governor Shapiro, take the sale of the Chester Water Authority off the table,” said Rep. John Lawrence during the press conference. “You can do it today. Now is the time to stand up on this issue before it is too late.” 

In 2020, the City of Chester was placed under receivership from the Department of Community and Economic Development (DCED), a department that reports to the executive branch and the governor’s office. Chester wants to sell CWA to Aqua for the financial assistance it would provide to the city, which declared bankruptcy in 2022 after years of financial struggle, largely due to missed pension payments. CWA supporters feel that it is unfair for them to shoulder the burden of Chester’s financial mismanagement when 80 percent of ratepayers reside outside of the City of Chester. There is currently a stay on a court case headed to the state Supreme Court to determine if the city has the right to sell CWA.

“The basic proposal by the state of Pennsylvania and the city is to monetize CWA,” said Bill Ferguson, co-founder of Keep Water Affordable, during the press conference. “Translated, the City of Chester wants to sell something they don’t own.” 

CWA currently provides water to 37 municipalities across Chester and Delaware counties and has about 49,000 customers serving about 200,000 people. Ratepayers worry that if Aqua succeeds in buying CWA, water rates will increase to inaccessible levels, even doubling or tripling in cost. In 2020, when New Garden Township sold their sewer system to Aqua, rates increased substantially and continue to do so for township residents who were once tied into the township’s aging wastewater and water network that is now owned and operated by Aqua – ratepayers that include Ferguson.

‘A band-aid over a gunshot wound’

Other local representation at the event included Oxford Borough Council President Kathryn Cloyd, who spoke on behalf of the ratepayers of the borough who she feels would suffer under the sale.

“Eighteen percent of our residents live at or below the poverty line, and our median per capita income is only about $27,000,” Cloyd said at the press conference. “Our very low-income residents will have to do without other essentials if their water rates increase. We’re not talking about buying dinner out. We’re talking about not being able to have their prescriptions filled or do home maintenance. It’s not fair to Oxford’s residents that they should have to pay for Chester's fiscal mismanagement.”

While Aqua’s offer of $410 million would solve the city’s financial struggles, some Chester residents and local leaders are similarly against the sale because of the increased rates they would pay and the lack of accountability in addressing the root cause of the city’s financial crisis.

“You’re putting a band aid over a gunshot wound, and it doesn’t fix anything,” said CWA employee Ramee Davis. “The City of Chester has been in duress for how many years? But the one thing they say they own is the one thing that’s been run properly. It’s kind of humorous to me.”

CWA employees in attendance voiced their concerns about losing their jobs if the sale is to go through. They shared that although they were told they would keep their jobs, they do not trust Aqua to honor that statement.

While the financial burden is certainly at the forefront for Save CWA and its supporters, stopping the sale isn’t just about keeping water rates low, but about the principle of water being a public utility and fighting corporate privatization.

“Instinctively, selling off a public utility is not something I’m on board with,” attendee David McMahon said. “Privatization of something as fundamental to human life as water is, for me, a nonstarter.”

McMahon has been involved in fighting the privatization of water and sewer systems since 2020 when he and other Norristown residents successfully fought the sale of their municipal wastewater utility. McMahon’s sentiments were not unique amongst the group. The overarching threat of water privatization weighed heavily on many in attendance.

“Quality, affordable water and wastewater services are basic necessities for health and wellness, but they are going further and further out of reach for consumers and families as private companies gobble up municipal systems across the Commonwealth,” said Sen. Carolyn Comitta, “Not only is it unfair, but it’s also wrong.”

The press conference also heard comments from CWA Board president, Noel Brandon, Sen. John Kane, Rep. Carol Kazeem, three CWA employees and Kofei Osei, an anti-privatization activist.

After the conference, the group went to Shapiro’s office to deliver their petitions but were met by closed doors despite the doors being open previously in the day, which was described as, “very unusual,” by Rep. Lawrence.

It has been reported that Shapiro received campaign funds for his 2022 campaign for governor from Essential Utilities -- which Aqua is a subsidiary of.

Save CWA organizers were able to secure a meeting with staffers from Shapiro’s office earlier that day despite being previously denied prior to the visit. Save CWA organizer Catherine Miller, employee Mike Greek, Ferguson, Brandon and Osei met with staffers of the governor’s office to voice their concerns and requests from the administration in a private meeting.

Miller and Brandon stated that the impression from the staffers is that Shapiro is going to, “watch things play out further” before stepping in to take any action.

“They want to try to pretend that they are separate from the receiver, even though the receiver is appointed by the governor,” Miller said. “They’re kind of hedging their bets a little bit here because of the court cases.”

‘You’re a human being with a need’

While the meeting did not end as confidently as the group had hoped, they were optimistic that their concerns were finally heard.

“I’m very happy that we’re able to show our faces and put a human body next to a problem so that they’ll remember us,” Brandon said. “I’m hopeful that they are going to talk to Gov. Shapiro.”

Overall, attendees left Harrisburg feeling successful about the productivity of the day and the awareness they were able to spread although their fight is still far from over.

“What I have found that has been that is important is to let your voice be heard and let your face be seen when it comes to these kinds of situations,” Brandon said. “You’re not just another legislation, you’re a human being with a need.”

To contact Contributing Writer Gabbie Burton, email [email protected].