Housatonic Water Works Seeks Second Loan to Complete Critical Infrastructure Project
Housatonic Water Works (HWW) is requesting approval from the Department of Public Utilities (DPU) to secure a second commercial loan of $1 million from CoBank ACB, a cooperative bank affiliated with the Farm Credit System. The company aims for an interest rate no higher than eight percent on the 20-year fixed-rate loan,a figure currently offered by CoBank at 7.2 percent as of the filing date. This loan, combined with existing debt, would bring HWW’s total long-term debt to just over $1.155 million.
the urgency of this financing request stems from the need to finalize equipment orders for a crucial infrastructure project designed to mitigate manganese discoloration in the water supply. According to testimony from HWW representative Mercer, securing the loan is vital to scheduling equipment delivery and completing the project before warmer weather increases the risk of manganese issues. HWW is requesting expedited review, hoping for a decision within 90-120 days.
Though, obtaining this funding hasn’t been straightforward. Mercer’s testimony reveals that CoBank initially hesitated to provide financing due to legal challenges brought by the towns of Great Barrington and West Stockbridge, as well as an enforcement action from the Great Barrington Board of Health. These legal hurdles arose shortly after a settlement agreement was approved by the DPU in july 2024.
Despite these obstacles,HWW initiated construction in March 2025,utilizing internal funds and a MassDEP grant to meet a construction commencement deadline of July 31,2025. A notable down payment was also made on the manganese filtration system, recognizing its lengthy manufacturing lead time. CoBank has since indicated a willingness to advance funds now that the litigation has been resolved - the Great Barrington Selectboard withdrew its appeal on August 11, 2025, followed by West Stockbridge on August 18th, and the great Barrington board of Health rescinded its enforcement order on August 7th.
Adding a new layer to the situation, Massachusetts Attorney General Andrea Campbell filed a notice of intervention in the case on October 1st.
As of now, the DPU has not scheduled a public hearing regarding HWW’s financing petition. Documents related to the filing are available for public review here.
