Great Barrington — The newest turn in the long-running saga of Housatonic Water Works happened at the Selectboard’s regular meeting on Tuesday, December 12. At the meeting, Selectboard Chair Steve Bannon announced that the town would investigate acquiring the company.
According to the company’s website, HWW was established in 1884 as The Housatonic Water Company, with the name changed to Housatonic Water Works in 1897. The company has had several owners throughout its history. Current HWW President Frederick Mercer purchased the company in 1984.
Over the past several years, customers on the HWW system have had to deal with multiple water quality issues, including high levels of haloacetic acids (HAA5), discoloration, and other various issues.
Back in late June, HWW filed an application with the Department of Public Utilities requesting a 112.7 percent overall revenue increase. The request reflects an $808,808 increase over the existing water rates. This has led to protests by residents who attended a DPU hearing back in late September, along with town leaders in Great Barrington, Stockbridge, and West Stockbridge, who all spoke against the proposed increase to the DPU.
Over time, towards the end of their regular meetings, the Selectboard has held executive sessions “to consider the purchase, exchange, lease, or value of real estate” regarding HWW. The most recent executive session was held on November 6.
At the beginning of the Tuesday, December 12 meeting, Selectboard Chair Bannon announced that the board has instructed Town Manager Mark Pruhenski to conduct “what we believe will be the final study in this process” in order to determine whether or not the town would acquire HWW. “What we need to determine is the costs that would be associated with the acquisition and operation of a water service utility, and what this will translate to in taxpayers’ dollars,” Bannon said. “An acquisition operation study will explore the revenues, expenses, and capital needs in anticipation of a town-owned water system operated on an enterprise fund basis.”
Bannon explained that an enterprise fund is “a department funded by the users of the service provider” and cited the town’s wastewater treatment plant as an example. “This study could take some months to complete, but it is critical that we have this information available before proceeding to negotiate or purchase [the company],” Bannon said. “This board, the taxpayers, and water customers need to be fully informed of the cost before the question is presented for consideration [at the annual town meeting]. We ask for your patience during this time, and we remain committed to solving this problem for residents of Housatonic.”
Last year, the town’s Fire District Prudential Committee looked into the possibility of taking over HWW. At a meeting in November 2022, however, members of the Fire District Prudential Committee made it clear that the district was not interested in operating or managing the Housatonic Water Works system.
Also last year, the town hired Raftelis Financial Consultants of Natick, Mass. to conduct a valuation of HWW’s water system. In a report presented to the Selectboard in late February, the company estimated the fair market value of the Housatonic Water Works system at $2.3 million. According to the company’s most recent report filed with the DPU, the company lists $712,512 in operating revenues for 2022, a decrease of $7,747 from 2021. The company lists $737,524 in its 2022 operating expenses, an increase of $20,002 from 2021.
