Customers of distressed rural water company can't wait for state investigation to play out, lawyers say
This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for Talk of the Town, a weekly newsletter of local stories that dig deep, events, and more from north-central PA, at spotlightpa.org/newsletters/talkofthetown.
BELLEFONTE — Lawyers for a distressed rural water company have asked a Centre County judge to approve an emergency takeover, but state regulators argue they have control over the situation.
Attorneys James Bryant and Carolyn Larrabee, who were hired by Rock Spring Water Company, argued in court Thursday that the company's poor management and deteriorating infrastructure should justify handing over interim operations to neighboring State College Borough Water Authority.
'We're trying to light a fire under someone, and there won't be any water in Rock Spring to put it out,' Bryant told Spotlight PA.
A lawyer for the Pennsylvania Public Utility Commission, however, told Centre County President Judge Jonathan Grine that state regulators have the authority to appoint an interim operator or force a sale — a lengthy process already in progress and with no guaranteed outcome.
Bryant and Larrabee were hired by Rock Spring owner J. Roy Campbell last fall after the Bureau of Investigation and Enforcement, an independent division within the commission, launched a review of the business.
Despite a recent email from Rock Spring's account ending all legal services with the pair, the lawyers said in a filing that they refused to abandon their client because dismissing them would require more than a 'one-line email from an unidentified party.'
A June Spotlight PA investigation found that Rock Spring, state regulators, and elected officials have failed the roughly 1,000 customers in Ferguson Township who rely on the 20-mile system, which needs $13.5 million in repairs, according to a 2022 engineering report. Efforts to find new ownership have gone nowhere, while years of neglect have led to crumbling infrastructure, low water pressure, regular outages, and sometimes lengthy boil water advisories.
The company has also racked up dozens of regulatory violations and tens of thousands of dollars in unpaid civil penalties as part of an ongoing legal battle with the Department of Environmental Protection over excessive water loss.
Larrabee previously told Spotlight PA that she and Bryant thought asking a local court to intervene would be the quickest way to help customers who — though frustrated with the water company — have resigned themselves to working around unreliable service after years of inaction by the PUC. (The PUC even erroneously told a customer in 2018 that it doesn't regulate Rock Spring.)
The lawyers, in their initial filing, called the water system and its management by Campbell and his daughter, Elizabeth, a 'clear and present danger.'
The Campbells attended court Thursday but did not speak. Prior to the hearing, they asked for more time to find new legal counsel and said the PUC likely had jurisdiction over the case. In a filing, Campbell wrote, 'There is no imminent danger to anybody that would result from continuing the hearing to a later date.'
Customers can't wait any longer, Larrabee said in court on Thursday.
Joseph Cardinale Jr., attorney for the PUC, argued that the statewide regulatory body has jurisdiction. The case is before an administrative law judge, with a two-day hearing scheduled for late April. He noted that state regulators could appoint an interim operator, also called a receiver, in that proceeding.
Lawyers for Rock Spring argued that the PUC's power isn't absolute. They also said that regulators had ample opportunity to hold the company accountable for hemorrhaging water and failing to pay at least $40,000 in fines. Instead, the legal battle over water loss with the Department of Environmental Protection has dragged on for years, Bryant noted.
Customer issues with Rock Spring go back at least a decade.
Charles Williams, who inherited 12 shares in the company from his father, detailed in court his struggles to access information about the business. He testified that Rock Spring appears to be under 'the full control' of J. Roy Campbell.
In October, Campbell said he'd rather sell the company and avoid a lengthy process by state regulators to force an acquisition. In December — after persuasion by his attorneys, according to legal filings — he signed a letter of intent to sell the business to the State College authority for $65,000.
The letter reflects a mutual interest in negotiating, but the State College water authority has entertained buying the company in the past and been ghosted by Rock Spring.
An acquisition would ultimately require approval from the water authority's board, the company's shareholders, and state regulators. A sale has yet to be completed.
The deadline to submit briefs addressing jurisdiction and the emergency request to let the State College authority handle interim operations while lawyers attempt to reach a final sales agreement is 5 p.m. today.
and help us reinvigorate local news in north-central Pennsylvania at spotlightpa.org/donate/statecollege. Spotlight PA is funded by foundations and readers like you who are committed to accountability and public-service journalism that gets results.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 days ago
- Yahoo
Los Angeles City Council Recognizes Operation HOPE Founder John Hope Bryant for His 33 Years of Commitment to Helping Angelenos Secure a Better Economic Future
Operation HOPE also Awarded $1.25 Million in Scholarships to Council District 10 - Represented by Councilwoman Heather Hutt - through its One Million Black Business Initiative, Empowering Local Entrepreneurs to Start, Grow, or Scale their Businesses LOS ANGELES, June 05, 2025--(BUSINESS WIRE)--Operation HOPE and its Founder, Chair, and CEO John Hope Bryant were recognized by the Los Angeles City Council on May 9, 2025 for their 33 years of commitment to improving the economic and financial outcomes for underserved communities in Los Angeles. Councilwoman Heather Hutt (Council District 10) sponsored the proclamation on behalf of the City Council and was joined by Mr. Bryant as they shared remarks during the Council's public session. In addition, Mr. Bryant announced that Operation HOPE would be offering up to $1.25 million in scholarships for its services through its One Million Black Businesses (1MBB) initiative for Council District 10, which includes the community of Leimert Park, home to Operation HOPE's first location opened in 1994. Following the City Council ceremony, Councilwoman Hutt and Mr. Bryant toured the Leimert Park business district, where they met with a number of local entrepreneurs driving the revitalization of the area, including many who received early support services from Operation HOPE. Awarded scholarships will support local entrepreneurs seeking to start, grow, or scale their businesses, including through access to Shopify's e-commerce platform. Services offered include one-on-one consultations with Operation HOPE small business specialists; support with developing business plans, marketing strategies, and accessing capital; access to Shopify's network of resources, including e-commerce training, a complimentary website, and peer support groups. Operation HOPE was founded by Mr. Bryant on May 5, 1992, in response to the civil unrest in the wake of the Rodney King trial. In the midst of the turmoil and with parts of the city still on fire, Mr. Bryant organized his first "Banker's Bus Tour" through South Central Los Angeles, making the business case for investment in underserved communities. Since that day, Operation HOPE has grown its reach with offices in 300 cities across the U.S., serving over 1,500 locations, helping more than four million individuals, and directing over $4.2 billion in capital into underserved communities throughout the country. "It is always an honor and a privilege to be recognized for our contributions to our home city," said Mr. Bryant. "Operation HOPE began with a simple idea in response to the upheaval in my community – that everyone deserves the opportunity to fully participate in the greatest economy the world has ever known. That idea began and was nurtured in Los Angeles, thanks to so many prominent leaders like Mayor Tom Bradley, Rev. Dr. Cecil Murray, and Peter Ueberroth, who helped mentor and guide me as this idea expanded far beyond the borders of Los Angeles." Over the past decade, Operation HOPE has delivered measurable, life-changing results across Los Angeles, empowering individuals and families through financial literacy, coaching and access to opportunity. The organizations' impact includes: Serving more than 24,000 unique clients across Los Angeles Delivering more then 117,320 financial services including education, coaching and referrals Facilitating 2,000+ financial workshops Providing one-on-one financial coaching to more than 10,500 clients Issuing 7,700+ referrals to banking products, promoting financial inclusion Helping 62% of clients improve their credit score by an average of 38 points Supporting 78% of clients in increasing their savings, with median growth of $800 Facilitating more than $46 million in loan applications, resulting in $27 million funded – including $43+ million in home loans applied for and $25+ million in home loans funded Supporting the creation of 111 new businesses, fueling local economic development About Operation HOPE, 1992, Operation HOPE has been moving America from civil rights to "silver rights" with the mission of making free enterprise and capitalism work for the underserved—disrupting poverty for millions of low and moderate-income youth and adults across the nation. Through its community uplift model, HOPE Inside, which received the 2016 Innovator of the Year recognition by American Banker magazine, Operation HOPE has served more than 4 million individuals and directed more than $4.2 billion in economic activity into disenfranchised communities—turning check-cashing customers into banking customers, renters into homeowners, small business dreamers into small business owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered disaster survivors. For more information: Follow the HOPE conversation on Twitter, Facebook, Instagram or LinkedIn. View source version on Contacts Operation HOPE Contact: Bill Mendel, Mendel Communicationsbill@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
5 days ago
- Business Wire
Los Angeles City Council Recognizes Operation HOPE Founder John Hope Bryant for His 33 Years of Commitment to Helping Angelenos Secure a Better Economic Future
LOS ANGELES--(BUSINESS WIRE)--Operation HOPE and its Founder, Chair, and CEO John Hope Bryant were recognized by the Los Angeles City Council on May 9, 2025 for their 33 years of commitment to improving the economic and financial outcomes for underserved communities in Los Angeles. Councilwoman Heather Hutt (Council District 10) sponsored the proclamation on behalf of the City Council and was joined by Mr. Bryant as they shared remarks during the Council's public session. In addition, Mr. Bryant announced that Operation HOPE would be offering up to $1.25 million in scholarships for its services through its One Million Black Businesses (1MBB) initiative for Council District 10, which includes the community of Leimert Park, home to Operation HOPE's first location opened in 1994. Following the City Council ceremony, Councilwoman Hutt and Mr. Bryant toured the Leimert Park business district, where they met with a number of local entrepreneurs driving the revitalization of the area, including many who received early support services from Operation HOPE. Awarded scholarships will support local entrepreneurs seeking to start, grow, or scale their businesses, including through access to Shopify's e-commerce platform. Services offered include one-on-one consultations with Operation HOPE small business specialists; support with developing business plans, marketing strategies, and accessing capital; access to Shopify's network of resources, including e-commerce training, a complimentary website, and peer support groups. Operation HOPE was founded by Mr. Bryant on May 5, 1992, in response to the civil unrest in the wake of the Rodney King trial. In the midst of the turmoil and with parts of the city still on fire, Mr. Bryant organized his first 'Banker's Bus Tour' through South Central Los Angeles, making the business case for investment in underserved communities. Since that day, Operation HOPE has grown its reach with offices in 300 cities across the U.S., serving over 1,500 locations, helping more than four million individuals, and directing over $4.2 billion in capital into underserved communities throughout the country. 'It is always an honor and a privilege to be recognized for our contributions to our home city,' said Mr. Bryant. 'Operation HOPE began with a simple idea in response to the upheaval in my community – that everyone deserves the opportunity to fully participate in the greatest economy the world has ever known. That idea began and was nurtured in Los Angeles, thanks to so many prominent leaders like Mayor Tom Bradley, Rev. Dr. Cecil Murray, and Peter Ueberroth, who helped mentor and guide me as this idea expanded far beyond the borders of Los Angeles.' Over the past decade, Operation HOPE has delivered measurable, life-changing results across Los Angeles, empowering individuals and families through financial literacy, coaching and access to opportunity. The organizations' impact includes: Serving more than 24,000 unique clients across Los Angeles Delivering more then 117,320 financial services including education, coaching and referrals Facilitating 2,000+ financial workshops Providing one-on-one financial coaching to more than 10,500 clients Issuing 7,700+ referrals to banking products, promoting financial inclusion Helping 62% of clients improve their credit score by an average of 38 points Supporting 78% of clients in increasing their savings, with median growth of $800 Facilitating more than $46 million in loan applications, resulting in $27 million funded – including $43+ million in home loans applied for and $25+ million in home loans funded Supporting the creation of 111 new businesses, fueling local economic development About Operation HOPE, Inc. Since 1992, Operation HOPE has been moving America from civil rights to "silver rights" with the mission of making free enterprise and capitalism work for the underserved—disrupting poverty for millions of low and moderate-income youth and adults across the nation. Through its community uplift model, HOPE Inside, which received the 2016 Innovator of the Year recognition by American Banker magazine, Operation HOPE has served more than 4 million individuals and directed more than $4.2 billion in economic activity into disenfranchised communities—turning check-cashing customers into banking customers, renters into homeowners, small business dreamers into small business owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered disaster survivors. For more information: Follow the HOPE conversation on Twitter, Facebook, Instagram or LinkedIn.
Yahoo
5 days ago
- Yahoo
Township allegedly fleeced by its own employee sues Spotlight PA to block access to bond claim details
This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for Talk of the Town, a weekly newsletter of local stories that dig deep, events, and more from north-central PA, at STATE COLLEGE — A small rural township has sued Spotlight PA to prevent disclosure of financial records as it seeks to recover through its insurer almost $533,000 in public money allegedly stolen by a former employee. This week, Gregg Township and the newsroom agreed to stay the case in Centre County court until the township's insurance company can make a determination. In November, Pennsylvania State Police accused Pamela Hackenburg of stealing more than half a million dollars from Gregg Township over five years and charged her with four felonies. The township then officially terminated Hackenburg, who had been on unpaid leave since last May. In December, Spotlight PA published an investigation into how the alleged theft had escaped detection by elected officials for years. That report was based in part on documents obtained through the state's open records law, including township credit card statements that showed numerous transactions with the sports betting company DraftKings. Hackenburg is awaiting criminal proceedings in the Centre County Court of Common Pleas, but she has not entered a plea, according to the county prothonotary office. While the criminal case proceeds, Gregg Township hopes to recover the township funds she allegedly stole. Gregg Township holds a bond policy issued by Travelers Casualty and Surety Company of America, which covers liability on behalf of the former secretary with a limit of $700,000, according to a copy of the renewal certificate Spotlight PA previously obtained. According to minutes from an Oct. 10 meeting, Township Solicitor David Gaines 'said that he made it clear [to the insurance company] that the township needs the money.' During a public meeting in November, Gaines reported that the insurance company was finalizing its response, and it was unclear how much money the insurer might decide to pay out. Spotlight PA filed an open records request in December seeking communications between Gregg Township and Travelers Insurance Company, as well as any documents the township had submitted to support the claim. Gregg Township denied Spotlight PA's request related to the bond claim in late January, saying the requested materials were exempt from disclosure under the state Right-to-Know Law. The newsroom appealed the following month. In April, the Pennsylvania Office of Open Records, a quasi-judicial agency that adjudicates public records matters, gave a partial ruling. The office ordered the township to provide some financial records related to the bond investigation, but denied Spotlight PA's request to obtain the township's communications with its insurance company. In a filing to the Centre County Court of Common Pleas a week later, Gregg Township said the decision by the OOR 'was erroneous and violated relevant law.' Because the bond claim investigation is ongoing, 'among other concerns, the Township does not want to risk upsetting that process at the peril of the Township's bond claim,' the filing said. 'The Township is more than happy to divulge records once Travelers has finalized its review of the matter.' After being sued, Spotlight PA emailed Gaines and township supervisors to ask about the lawsuit and seek additional clarity on the insurance claim. Gaines asked the news outlet to ask questions during monthly public meetings and not over email. 'Last year, Gregg Township uncovered evidence indicating that one of its employees may have used Township funds as her own. The Township continues to investigate that matter, and the Township has provided routine reports to the community about the status of the investigation, most often through discussion at the supervisors' meetings,' Gaines wrote in an email to Spotlight PA. Josh Bonn, transparency attorney at Cohen Seglias Pallas Greenhall & Furman PC, is representing Spotlight PA pro bono in this case. He said public access to government financial records, especially when there are allegations of misuse of public funds, is critical. 'The 1976 film All the President's Men popularized the catch phrase, 'follow the money,' as an effective means to root out public corruption,' he said in an email. Gregg Township and Spotlight PA entered into an agreement Wednesday to stay the proceedings in court, letting the dispute remain in place while the bond company makes its decision on the claim. The township said in its filing that Travelers is expected to render a decision in the next 30 to 60 days. and help us reinvigorate local news in north-central Pennsylvania at Spotlight PA is funded by foundations and readers like you who are committed to accountability and public-service journalism that gets results. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
