Great Barrington — The Department of Public Utilities (DPU) has scheduled a public hearing via Zoom on Thursday, January 8 at 2 p.m., to deliberate a request from Housatonic Water Works (HWW) to approve two loans that the company states are necessary in order to finance the completion of a manganese filtration plant.
The scheduled hearing is the latest chapter in the long-troubled company’s water-quality saga.
In July 2024, the DPU approved a rate-increase request that allowed the company to increase its customer rates by over 90 percent over a span of five years.
Several capital projects, including the installation of a manganese filtration plant, were included as conditions in the DPU’s approval.
The company was fined $12,360 in July by the state’s Department of Environmental Protection (MassDEP) for various violations. The fine was suspended as long as the company complied with terms and conditions outlined in a consent order, including adhering to a schedule for construction of the manganese treatment plant.
On September 12, company Treasurer James Mercer wrote to MassDEP that the company was anticipating delays in the construction of the manganese treatment plant. On September 30, HWW filed an application with the DPU requesting the approval for two loans that the company deems necessary in order to finance the completion of the plant.
The first loan, $155,089 at 3.75 percent interest, was already obtained in 2020 under the Small Business Administration’s (SBA’s) COVID-19 Economic Injury Disaster program.
On September 30, the company filed a financing petition with the DPU indicating that it intends to amend prior annual returns to reflect the reclassification of the SBA loan. However, in a letter on October 9, DPU Hearing Officer Jennifer Cargill ordered the company not to do so “unless and until directed to do so by the department.”
Additionally, the company is seeking to obtain a second commercial loan for $1 million at an interest rate not to exceed eight percent from CoBank ACB out of Denver, Colo., a cooperative bank and member of the Farm Credit System.
On October 1, Assistant Attorney General William Rose filed a notice of intervention in the case.
On November 6, Wellesley attorney Bryan Bertram, from the law firm of Harrington Heep LLP, filed a petition to intervene on behalf of the town of Stockbridge.
On November 7, attorney David Doneski, from the Boston law firm of KP Law, filed a petition for leave to intervene in the case on behalf of the town of Great Barrington.
Attorney Doneski writes in his petition:
Since the Town has a substantial and material interest in the commencement and successful completion of the filtration plant construction work, it seeks leave to intervene so that it may be directly involved, and participate fully, in the review of the request for authorization to incur construction debt for the project. The Town seeks relief in the form of an order which both approves the debt authorization requested but also sets project delivery timelines, so as to ensure that the intended relief for ratepayers is secured as quickly as possible.
In the Order approving the settlement in D.P.U. 23-65 [the original rate increase request approved by the DPU in July 2024], the Department acknowledged the deep frustration expressed by the Company’s customers in response to the water discoloration issues, stated that the Department’s intent in approving the settlement was to ensure that the Company takes concerted efforts in the short-term to improve its service quality and provide a better product, and confirmed that the Town is an essential stakeholder in ensuring that its resident customers receive safe and reliable water service at the lowest possible cost.
The Town will present evidence supporting the need for construction of the filtration plant in an expeditious fashion, so as to ameliorate an unacceptable water quality situation for Company customers. As necessary, the Town will also provide information regarding local infrastructure, water supplied to customers by the Company, and the quality of the water supplied by the Company.
In pre-filed testimony submitted to the DPU on November 6, company Treasurer Mercer writes that, while construction at the site of the project is underway, HWW “will need the financing in place in the very near term to be able to submit an order to its vendors to schedule delivery of the Project’s equipment in time to complete the Project in a timely manner.” Mercer writes:
Although the Company has advised MassDEP that it will likely need an extension due to the need for Department approval of this financing petition, it is critical for the Company to be able to place the project in service prior to the start of the warmer weather months when the occurrence of manganese discoloration is at a higher risk. Accordingly, the Company is seeking expedited approval of this financing petition and requests approval within 90 to 120 days.
In his testimony, Mercer says that the company currently has 847 active customer connections and provides service to a population of around 1,400 residents. According to his testimony, the water-distribution system includes 16.6 miles of water mains “mostly made of iron and ductile iron, with smaller portions of transite, steel, and plastic pipe.”
Mercer claims that “although this situation is not a health concern, the color does make the water appear displeasing and that needs to be resolved.”
Back in October 2024, the company was cited by MassDEP for withholding test results showing high manganese levels.
According to the Centers for Disease Control, high levels of manganese can affect the nervous system in adults and “[s]tudies in children have suggested that extremely high levels of manganese exposure may produce undesirable effects on brain development, including changes in behavior and decreases in the ability to learn and remember.”
in his testimony, Mercer clarifies his role in the company:
I am Treasurer, Director, and Chief Financial Officer of the Company. I participate in financial, operating and policy decisions of the Company. I also serve as the Primary Certified Operator for both the treatment system and the distribution system” and that he is responsible for managing the day-to-day operations of the company.
Back on October 28, Assistant Attorney General Rose filed several questions for Mercer concerning the proposed loans.
When asked if HWW has applied for other loans and grants, Mercer replies:
Apart from the grant referenced in Exhibit HWWC-JJM-3 [A MassDEP Emerging Contaminants in Small or Disadvantaged Communities grant award of $360,000 approved in September 2024], the Company currently has no other grant applications pending for the manganese filtration system project. There were no other grants for which the Company was eligible to apply for to fund the project.
However, the Company will continue to monitor potential funding opportunities and will apply for any state or federal funding programs should they become available in the future and if the manganese filtration system project is an eligible water infrastructure improvement.
Mercer writes that the company would continue to seek other sources of loan financing.
The Zoom link for the public hearing on January 8 is here.
The department is accepting public comments until January 9.
As of press time, the DPU has only published one public comment, submitted by Housatonic resident Tracee Augcomfar:
The Mercers have never been held accountable for their disastrous handling of our water supply. Yet they keep being [sic] for money.
If there was a fire in Housatonic TODAY the water pressure would not suffice to put it out. If an infant cannot drink the water in their formula, then it’s not potable and that’s where we are.
The Mercers have received prior funding and DID NOT fix the issue because they don’t know what they’re doing which is why the chemicals they put in the water is not measured.
The greater issue is the infrastructure NOT the water itself, however it’s being masked by claims of manganese issues because they can cheaply put that bandaid on it.They recently received a grant of 350k- how was that money used? Now they want more??? Who did the checks and balances on how they spend??
On top of that we have a greedy town overseer that decides to allow more construction to put an even greater strain on our falling water supply yet new construction comes equipped with water filtration systems. Not to mention the damage that’s being done to our appliances every time they flush.
Pieces of metal are showing up and coughing everything. I’ve already had to replace my 1yr old dishwasher.
Point in case on my street (Oak) we had our street repaved in June 2025.
There was a water main break in front of my house which FORCED HWW Co [sic] to fix it. Since then the amount of discolored water has subsided somewhat.
When I purchased my home on 5/2020 they refused to turn off water at the curb because of the rotting nozzle. They eventually had no choice and you could see how bad it was.
We are now deciding to put all monies into a trust instead of continuing to pay for unhealthy water. We have even considered any transdermal issues that may arise even if we aren’t drinking the water. For example my bill just went up 1.20 without reason or explanation. What is that even for? Enough is enough. We shouldn’t be counted before something gets done.
Even if 2 families experience this that’s 2 too many. I would not give them a dime until they provide a written course of action with time constraints, and all funding expenditures are verified and accounted for by an outside so source [sic] on a State level.
Public comments can be submitted to the DPU via email to jennifer.cargill@mass.gov. All submitted comments must include the author’s name, email address, and mailing address.
