Wyomissing, PA – November 17, 2020 – McCarthy Engineering Associates, Inc. was recently recognized by the Pennsylvania Public Utility Commission as a Utility Valuation Expert. McCarthy Engineering is one of six engineering consultants on the list and overall one of 12 certified companies on the list.
Governor Tom Wolfe signed legislation, Act 12 of 2016, to help municipalities selling their aging water and wastewater system to private sector investor-owned entities. Under this legislation municipalities can engage the services of a registered Utility Valuation Expert to determine fair market value of their system. The program is voluntary but both buyer and seller must agree to use it. The program benefits both the municipality and the potential buyer by presenting a more accurate picture of a utility’s value than the traditional method. The buyer and seller each pick an independent Utility Valuation Expert who has six months to calculate an estimated value of the water system. The value takes into account factors such as: the value of the infrastructure itself, the system’s anticipated revenue and foreseeable costs such as repairs, maintenance or improvements required by law. The acquisition price is the average of the two consultants’ estimates unless the parties agree on a lower one.
In Pennsylvania, Act 12 of 2016 has greatly helped municipally-owned water and wastewater utilities as they have infrastructures that are in need of major repair or replacement and would require the municipalities to make extraordinary investments that would ultimately be negatively felt by their customers. Being evaluated by a registered Utility Valuation Expert and selling their systems to a larger investor-owned utility means benefits to their end users of safe, reliable service at reasonable rates.
“As a provider of engineering services to many municipalities, we know they are considering selling their water and wastewater systems to address financial obligations. By having this certification, we are now able to expand our services and help the municipalities further by fairly valuing their systems and protecting their assets,” said Jim McCarthy, McCarthy Engineering Associates, Inc. President & CEO.
For more information about the utility valuation process, please contact Jim McCarthy at 610.373.8001 or [email protected]ccarthy-engineering.com.
About McCarthy Engineering Associates, Inc.
For 20 years, McCarthy Engineering Associates, Inc. has provided the public and private sectors of Berks and the surrounding counties with full service engineering and consulting services such as: site, civil, structural, mechanical, electrical, HVAC, plumbing, operational, feasibility, environmental, and fire protection. McCarthy Engineering has offices located in Wyomissing, PA and Boyertown, PA. For more information, visit https://www.mccarthy-engineering.com.