HARRISBURG — A Pennsylvania court recently found a state commission should not have approved the sale of a municipal sewer system to a private company because the deal would harm consumers, a ruling that has the potential to raise the bar for such acquisitions. The decision challenges six years of precedent in favor of water consolidation that critics contend has led to customers overpaying tens of millions of dollars on their bills.

The Public Utility Commission, which approved the deal, said it was still reviewing the ruling. But privatization skeptics say that if the ruling stands it will force the panel to more closely scrutinize proposals.

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In the July 31 ruling, a three-judge Commonwealth Court panel found the Public Utility Commission erred in allowing Bryn Mawr-based Aqua Pennsylvania to buy a municipal sewer system without showing how the sale would benefit the public.

The judges found that the potential doubling of nearly 3,900 customers' bills in a suburban Philadelphia township outweighed the possible benefits from digital billing, a 24/7 hotline, and almost $17 million in planned investment for the system.