Water Polo, I, L.P. v. W. Hanover Twp. Sewer Authority

── Water Polo, I, L.P. v. W. Hanover Twp. Sewer Authority ── Court: Commonwealth Court of Pennsylvania Date: May 15, 2026 Author: Covey Category: General IN THE COMMONWEALTH COURT OF PENNSYLVANIA Water Polo, I, L.P. : : v. : : West Hanover Township : Sewer Authority, : No. 1283 C.D. 2024 Appellant : Argued: April 13, 2026 BEFORE: HONORABLE ANNE E. COVEY, Judge HONORABLE LORI A. DUMAS, Judge HONORABLE STELLA M. TSAI, Judge OPINION BY JUDGE COVEY FILED: May 15, 2026 West Hanover Township (Township) Sewer Authority (Authority) appeals from the Dauphin County Common Pleas Court’s (trial court) September 3, 2024 order (docketed September 4, 2024) reversing the Authority’s determination that denied Water Polo, I, L.P. (Water Polo) relief under Act 43 of 2021 (Act 43).1 Essentially, there is one issue before this Court: whether the Authority correctly concluded that Water Polo was not entitled to Act 43 relief.2 After review, this Court reverses. The Authority is a municipal authority that provides sewer services within the Township. On October 15, 2013, the Authority enacted Resolution 2013- 1 Act 43 amended Section 5607(d)(9) of the Municipality Authorities Act, 53 Pa.C.S. § 5607(d)(9) (relating to authority rate powers). 2 The Authority presents five issues in its Statement of the Questions Involved: (1) whether Water Polo is entitled to Act 43 relief; (2) whether the trial court applied the wrong standard of review; (3) whether Water Polo demonstrated that it met the usage requirements for Act 43 relief; (4) whether the Authority acted within its discretion by enacting Resolution 2022-A-03; and (5) whether the trial court erred in finding that the amount billed for Act 43 equals 180 gallons per day. See Authority’s Br. at 6. Because this Court reviews the Authority’s decision, not the trial court’s decision, it does not address Authority questions 2 and 5. The remaining issues are subsumed within the issue as restated by this Court, and will be addressed accordingly herein. A-2, which established the sewer rate, effective January 1, 2013, for Domestic Establishments3 at $624.00 per year or $156.00 per quarter. See Reproduced Record (R.R.) at 13. The Authority considers each apartment unit one equivalent dwelling unit (EDU) for rate purposes. Water Polo owns the Reserve at Manada Hill (the Reserve), an apartment complex with multi-family dwellings, in the Township. On June 30, 2021, the General Assembly enacted Act 43, which became effective on August 29, 2021. Act 43 added the following language to Section 5607(d)(9) of the Municipality Authorities Act (MAA): The owner of multiple residential units that are served by a single water meter may periodically request the authority to adjust the amount billed by showing a minimum of [5] consecutive years of actual usage data to determine if the amount billed exceeds the actual usage by 30% or more. If the usage data shows that an adjustment is needed, the authority shall appropriately adjust the billing and use the adjusted amount going forward. When calculating the new amount, the authority may include up to 10% over the amount used. After an initial adjustment, the owner may 3 Resolution 2017-A-01 defines Domestic Establishment as: [A]ny room, group of rooms, apartment, house trailer, building, or other enclosure connected, directly or indirectly, to the [s]ewer [s]ystem and occupied or intended for occupancy as separate living qu