The proposed $60 million bailout of the city of Chester by the Chester Water Authority is being challenged in court by Bryn Mawr-based Aqua Pennsylvania, writes Andrew Maykuth for the Philadelphia Inquirer.

If it goes ahead, it would prevent Aqua’s attempt to buy the strategically positioned water utility. CWA is especially attractive to Aqua because its distribution system serves 43 communities in Chester, Delaware, and Lancaster counties that border existing Aqua territory.

Aqua filed the lawsuit in Delaware County Common Pleas Court as one of CWA’s customers, who would see a 10 percent rate increase for the proposed settlement with Chester. The settlement is designed to clear Chester’s debt and block an uninvited, $320 million takeover bid of the water authority by Aqua.

In the lawsuit, Aqua referred to the city and CWA as an “unholy alliance” and called the terms of the settlement “commercially unreasonable and patently absurd.”

Meanwhile, CWA’s solicitor, Francis J. Catania, called Aqua’s legal action “premature and retaliatory.” He said that the lawsuit’s goal is to intimidate the city of Chester into not signing the settlement with CWA.

Read more about the lawsuit in the Philadelphia Inquirer here.

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