FERGUSON TOWNSHIP — The owner of a struggling water company in rural Center County says he wants to sell the 77-year-old family business, which could avoid a lengthy process by state regulators. ‘State to force a sale in order to improve service.

Rock Spring Water Company President J. Roy Campbell said he would prefer to settle the case, brought by the investigative arm of the Pennsylvania Public Utility Commission.

“We would like to sell it before the end of the year,” he told the judge during an Oct. 30 pre-hearing conference.

A June Spotlight PA investigation found that Rock Spring, state regulators and elected officials failed the nearly 1,000 customers who rely on the 20-mile water system in Ferguson Township. Years of neglect have led to crumbling infrastructure, low water pressure, regular outages and sometimes lengthy boil water advisories.

Problems with the company were referred to the Bureau of Investigation and Enforcement, a division within the Public Utility Commission, on May 23. The unit then launched a review of the company, citing its history of regulatory violations and an ongoing legal battle with the ministry. protection of the environment in the face of excessive water losses.

The office also noted the company’s continued failure to resolve the issues and pay tens of thousands of dollars in civil penalties.

An investigation into whether the commission should order Rock Spring to sell to another utility company “is in the public interest,” Carrie Wright, chief deputy prosecutor, wrote in the office’s Sept. 20 filing.

In its initial filing, the office identified five possible buyers: the private companies Aqua Pennsylvania, Pennsylvania American Water Company and Veolia Water; and the municipally operated State College Borough Water Authority and the Huntingdon Area Water and Sewage Authority.

The Huntingdon Municipal Authority did not participate in the proceedings.

Meanwhile, Veolia Water asked to be excluded from the case in its filings and at the pre-hearing conference, citing a lack of local infrastructure to serve Rock Spring customers. The privately held company also expressed concerns about what an acquisition — and the millions of dollars needed to make repairs and upgrades to the system — would mean for its existing customers.

Aqua noted in its filings that its closest pipelines are 50 miles from the Rock Spring system and argued that there are other providers better positioned to take over water service, but the company private sector did not request to be exempted from the formal process.

State College and Pennsylvania American Water have systems close to the Rock Spring service area, which could make the transition easier. Both entities have expressed interest in proceedings and discussions regarding a possible settlement.

Current infrastructure requires millions of dollars in repairs to improve service and comply with state regulations, so cost is a factor.

A 2022 engineering report commissioned by Ferguson Township estimates the Rock Spring system required $13.5 million in upgrades. The municipality does not oversee Rock Spring, but local officials have tried to find ways to resolve the problem on behalf of residents.

The report – compiled by Altoona-based Gwin Dobson & Foreman Engineers and obtained by Spotlight PA – identifies the State College Authority as the “only logical entity capable” of acquiring Rock Spring. The assessment also identified grant and loan programs that would help fund improvements and avoid increasing rates for customers.

The water board has already tried to negotiate the sale of Rock Spring, to no avail.

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