A judge has turned away the latest attempt by the Prichard water board to curtail the powers of a court-appointed receiver who is running the troubled utility.
The Prichard Water & Sewer Board, which remains in place but enjoys not decision-making authority, asked Mobile County Circuit Judge Michael Youngpeter to order a series of “transparency” requirements for receiver John S. Young Jr. But in an order issued Friday, Youngpeter turned that down.
“The Receiver derives its authority from the Court and is holding and administering the assets and liabilities of PWWSB for and at the discretion of the Court,” he wrote., alleging that it was in default of $55.78 million that it borrowed in 2019. After hearing testimony that the board had failed to make full payments into a fund used to pay the bondholders, the judge agreed. He tapped Young, a former water company executive with extensive experience working with troubled utilities.
“The customers the PWWSB represents have a right to know the actions of the Receiver,” the board states in a court filing. The judge ruled last week that as an extension of the court, Young answers directly to the judge. And is not a party to the lawsuit. That means that any communications between the judge and receiver are not subject to disclosure to the water board.
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