American Water Issued Cease-and-Desist to Union

The utility company sent a legal warning to the Utility Workers of America regarding the distribution of rate data.

Updated on Sept. 28, 2026 in Utilities

American Water Issued Cease-and-Desist to Union

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American Water has sent a cease-and-desist letter to the Utility Workers of America to block the union from sharing historical rate data. The move comes as Wilkes-Barre officials weigh a proposal to sell city sewer assets to the company.

Why it matters

The union claims the company is attempting to suppress information about past rate hikes to influence a potential sale of city assets in Wilkes-Barre. American Water maintains the communications are problematic given ongoing collective bargaining negotiations.

American Water has secured five statewide base rate hikes between 2021 and 2026. In other regions, Scranton sewer bills have risen 244% since 2016, while Coatesville wastewater bills have climbed 472% since 2001.

The players

American Water

This is a major utility company that manages water and wastewater services across multiple Pennsylvania municipalities.

Utility Workers of America

This labor union represents utility employees and is currently involved in contract negotiations with the company.

Wilkes-Barre City Council

This local governing body is currently considering a proposal to privatize the city's sewer assets.

The details

The union disseminated fliers to Wilkes-Barre officials detailing significant increases in residential water and wastewater costs across the state. A corporate law firm representing American Water responded to the union’s outreach with a formal demand to cease the activity.

American Water purchased the Coatesville sewer system in 2001.
The Scranton wastewater system was acquired in 2016.
Five base rate hikes were approved between 2021 and 2026.
A law firm sent the cease-and-desist letter on September 21, 2026.
The union notified Wilkes-Barre officials of the intimidation on September 28, 2026.

Market Landscape

This clash reflects broader tensions over utility privatization as companies move to consolidate regional sewer assets. The conflict follows a pattern set by the historical rate hike approval trend in Pennsylvania from 2021 to 2026.

Residents in Wilkes-Barre may see changes to municipal utility service models depending on the outcome of the sewer asset sale. Historical data indicates that privatized systems in other cities have faced significant rate increases for residential customers.

The takeaway

Transparency regarding historical rate structures remains a critical point of contention during municipal privatization debates. Residents should monitor local council proceedings to understand potential long-term impacts on utility bills.