1. (a) Applications for the acquisition of an existing water system or existing wastewater system shall incorporate the following information. The applicant may request a waiver of certain requirements, under § 1.91 (relating to applications for waiver of formal requirements):

   1. (1) General information.

      1. (i) A copy of the executed purchase agreement and evidence that each entity was authorized to enter into the purchase agreement.
      2. (ii) The cost of the property of the acquired system as shown on the balance sheet of the transferor.
      3. (iii) The depreciation and amortization reserves applicable to the property, estimated if not ascertainable from books and records.

   2. (2) Additional documentation.

      1. (i) Map of acquired service territory. A map or plan of suitable scale and detail delineating the boundaries of the new service area on an existing service area map or as a new service area map, including the location or route of the existing water or wastewater system.

      2. (ii) Plant in service and general system information.

         1. (A) A full description of the acquired water system or wastewater system, including a list of all major facilities and appurtenances such as wells, tanks, pumps and structures.
         2. (B) If the acquisition application is filed by a Class B or Class C water public utility or a Class B or Class C wastewater public utility, the quantity and material used for construction for all transmission and distribution or collection facilities.
         3. (C) A distribution system map showing the location of major facilities, pipe sizes, fire flow and pressure zones or a collection system map showing the location of major facilities, pipe sizes, gravity or force main designation and direction of flow.
         4. (D) A statement of contributions toward the construction of the system; the contributions shall be subdivided to show those subject to refund and those which are not.
         5. (E) If the acquisition application is filed by a Class B or Class C water public utility or a Class B or Class C wastewater public utility, an identification of the DEP-permitted productive or treatment capacity of sources, treatment facilities, major distribution or collection facilities.
         6. (F) A copy of a valid certified operator’s certificate from the acquiring company appropriate to the facilities being operated.
         7. (G) A list of planned water or wastewater system improvements, including upgrades required by DEP or the acquiring public utility’s existing system, or both, along with the associated estimated costs.

      3. (iii) Design and compliance.

         1. (A) Copies of letters signed by an authorized representative of the relevant governmental entities confirming that the system of the selling entity does comply or does not meet all the applicable requirements. The signed letter from the governmental entity shall be construed as evidence of proof of compliance or noncompliance with the following mandates:

            1. (I) A copy of applicable DEP public water supply and dam safety permits or water quality management permits or NPDES permits issued under section 7 of the Pennsylvania Safe Drinking Water Act (35 P.S. § 721.7) and sections 6, 202, 207 and 501 of The Clean Streams Law (35 P.S. § § 691.6, 691.202, 691.207 and 691.501).
            2. (II) Applicable design, construction and operation standards of DEP, including 25 Pa. Code § § 109.702 and 109.709 (relating to operation and maintenance plan; and cross-connection control program).
            3. (III) Applicable Act 537 Plan documents for all affected municipalities relating to the acquired service territory, as required by section 5 of the Pennsylvania Sewage Facilities Act (35 P.S. § 750.5).
            4. (IV) Applicable design, construction and operation standards and requirements of the county health department.
            5. (V) The Delaware River Basin Commission, the Susquehanna River Basin Commission, the Ohio River Basin Commission and the Great Lakes Commission standards.
            6. (VI) Applicable requirements of the current Pennsylvania State Water Plan, including any local watershed areas.
            7. (VII) Applicable requirements of any officially adopted county, multi-municipal or municipal comprehensive plans, and applicable zoning designations and ordinances, including any necessary amendments.
      4. (iv) Customers. If the acquisition application is filed by a Class B or Class C water public utility or a Class B or Class C wastewater public utility, the number of customers of the selling entity by class of customer, related water consumption or wastewater gallons treated in the previous calendar year, and the future number of estimated connections for the next 5 years with the estimated demand, by year.
      5. (v) Rates. A proposed initial tariff shall be submitted with the application that must include rates, proposed rules and conditions of service and a copy of the customer notice to be sent to all customers of the selling utility.

2. (b) DEP compliance history.

   1. (1) If the acquisition application is filed by a Class B or a Class C water public utility, it shall provide a 5-year history of compliance with DEP regulations with an explanation of each violation.
   2. (2) If the acquisition application is filed by a Class B or a Class C wastewater public utility, it shall provide a 5-year history of compliance with DEP regulations with an explanation of each violation.

3. (c) Financials.

   1. (1) If the acquisition application is filed by a Class B or Class C water public utility, it shall provide a copy of its last annual financial report filed with the Commission and a summary of earnings for the past 5 years.
   2. (2) If the applicant is a Class B or Class C wastewater public utility, it shall provide a copy of its last annual report and a summary of earnings for the past 5 years.
4. (d) Information on affected water systems and wastewater systems. Identify the other certificated water public utilities or certificated wastewater public utilities or municipally owned public water systems or municipally owned public wastewater systems that are directly adjacent to, abut or are situated within one mile of the acquired system.

5. (e) Service of acquisition application.

   1. (1) At the time of filing, a complete copy of the acquisition application with exhibits shall be served by registered or certified mail, return receipt requested, upon the following entities:

      1. (i) The planning office of each municipal corporation that is included in whole or in part in the service territory or service territories of the selling water public utility or wastewater public utility.
      2. (ii) The Commission’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate and DEP’s central office and regional office or offices located in the service territory of the selling entity.
      3. (iii) Each certificated water public utility or certificated wastewater public utility, or a municipally owned public water system or municipally owned public wastewater system whose service territory abuts or is within one mile of the acquired service territory or service territories.

6. (f) Notice. The application will be docketed by the Secretary of the Commission and thereafter forwarded for publication in the Pennsylvania Bulletin.

   1. (1) The applicant shall publish notice of application, as supplied by the Secretary, once a week for 2 consecutive weeks in one newspaper of general circulation located in the service territory or territories covered by the application and shall submit proof of publication to the Commission. If the application includes a request to provide service in an area covered by a mandatory connection ordinance, the notice provided under this section shall include a conspicuous statement that such an ordinance applies.

   2. (2) In applications where the acquiring utility is proposing to adopt rates other than the selling utility’s existing rates, the applicant shall also, within 14 days after filing the application with the Commission, provide direct notice to the selling utility’s customers of the application and of any proposed increase in rates. Such direct notice shall be in the form of separate mailings to the service addresses of all customers of the selling utility and shall include the following information:

      1. (i) A comparison of the rates before and for the first year after the acquisition.
      2. (ii) Information regarding whether the proposed rates are higher than the rates of the selling water public utility or wastewater public utility.

Authority

The provisions of this § 3.515 added under 66 Pa.C.S. § § 1101—1103.

Source

The provisions of this § 3.515 added September 26, 2025, effective January 26, 2026, 55 Pa.B. 6829.

Cross References

This section cited in 52 Pa. Code § 3.516 (relating to protests).