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FERGUSON TOWNSHIP — Pennsylvania American has made “crucial” updates to Rock Spring Water Company’s shaky system and earned a passing inspection from the Department of Environmental Protection in the past month.
But the interim manager wouldn’t disclose how much money it has spent shoring up the rural Centre County water company’s infrastructure.
State regulators tasked Pennsylvania American Water Company with managing the troubled Rock Spring Water Company after a judge found that its 1,000 customers faced “imminent health risks.”
New technology installed by Pennsylvania American has stabilized service, and other measures have brought the system into regulatory compliance, senior staff told Spotlight PA.
Early investments include a new monitoring system that uses real-time data to detect issues. The company said the upgrade helped staff identify an issue that occurred overnight earlier this month and replace the well pump motor within 24 hours without disrupting service.
Pennsylvania American also installed a new analyzer to track chlorine levels, deployed extra measures to prevent chemical spills, found and plugged some leaks and tightened security around the system’s lone well.
From 2010 to 2023, Rock Spring hemorrhaged an annual average of 63% in water, according to a Spotlight PA review of reports filed with the state’s Public Utility Commission (PUC). Industry standards consider levels greater than 20% to be excessive. These losses have been the subject of a yearslong legal battle with the DEP, which has also cited Rock Spring owner J. Roy Campbell for dozens of other regulatory violations.
A leak repair helped reduce the amount of water pumped out by 40,000 gallons a day, said Joe Woodward, the company’s senior director of central and southeast Pennsylvania operations.
Pennsylvania American also fixed issues with the well’s chemical feed system, which disinfects water. The changes resulted in a positive DEP inspection, which notes “excellent progress implementing short term improvements.”
“Their hard work and dedication to ensuring that safe water is delivered to the customers of Rock Spring is to be commended,” the state agency responsible for monitoring drinking water safety wrote in its review.
Brandy Braun, Pennsylvania American’s director of water quality and environmental compliance, told Spotlight PA the company is confident that Rock Spring is now meeting monitoring and reporting standards.
Pennsylvania American declined to say how much money has gone toward repairs. But Woodward said the company has relied on Rock Spring’s accounts to support these efforts.
If Rock Spring can’t pay for something necessary for water service, Pennsylvania American could directly cover the funding and later seek reimbursement from the ultimate buyer.
“We’re going to do whatever is required to make sure that we feel the water is safe,” Woodward told Spotlight PA. “We’re meeting all the sampling requirements, any regulations that are required, and we will worry about the cost later.”
Rock Spring’s customers have dealt with unreliable service for more than a decade. A Spotlight PA investigation published in June found that Rock Spring, state regulators and elected officials failed those relying on the roughly 20-mile system.
As that story was being reported, investigators launched a review of the company. And while Campbell said in October he’d rather avoid a lengthy process by state regulators to force a sale — even signing a letter of intent to sell to the nearby State College Borough Water Authority in December — an acquisition never materialized.
With the PUC investigation ongoing, Pennsylvania’s Office of Consumer Advocate in February urged a judge to grant emergency relief to prevent “irreparable” injury to customers by letting another entity manage the business. That request was granted by a judge in February and approved by the utility commission last month.
Improvements being made by Pennsylvania American are a result of that March order, which stripped Campbell of control over the private business his family founded in 1947. The order named Pennsylvania American as receiver, or the interim operator.
The PUC also urged talks to broker a sale to the State College authority, which has entertained the idea of acquiring Rock Spring over the years. The parties have until mid-June to reach an agreement. If they can’t, a formal process to determine whether to force a sale is pending.
“Customers of Rock Spring have experienced unreasonable service for far too long,” PUC Chair Stephen DeFrank said during the March 13 meeting. “We believe that this is a pathway forward and establishes a timeline forward. I will say to all parties involved: Please negotiate in earnest.”
Woodward appeared before the Ferguson Township Board of Supervisors in early April to give an update on the temporary managerial role and improvements to the system. He said talks between the municipal authority and Rock Spring are ongoing, adding that the State College authority presented Rock Spring with a sales agreement.
“Now, it’s incumbent upon the owner and his shareholders to act upon that agreement,” he told the board.
In a March email to Spotlight PA, a Rock Spring representative who didn’t provide their name or title said the company “has been negotiating a sale” with the water authority.
Pennsylvania American has staff in the service area daily to monitor the system and ensure smooth operations. Per the directive from state regulators, the company must make a list of recommended improvements and provide quarterly updates to the PUC.
Customers should’ve received notification of the temporary management change in recent weeks. Pennsylvania American also created a webpage for updates. Rock Spring customers with questions may also contact the company at Rock.Spring.Customer@amwater.com or 814-231-2911.
Pennsylvania American is still in regular contact with Campbell to discuss the customer list, billing information and other necessary functions, Woodward said.
“They’ve done everything we’ve asked them to do in the interim period here up to this point,” he said.
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