Pittsburgh says it was overcharged by utility

Modern Brewery Age, May 9, 2005

AP--Beer isn't the only thing coming to a head at Pittsburgh Brewing Co.

A dispute with local sewer and water authorities is, too, after the brewery's attorney said it likely won't pay a $2.3 million sewage treatment bill due Sunday.

The brewery, which makes Iron City and I.C. Light beers, recently sued the Allegheny County Sanitary Authority, or Alcosan, contending it has been overcharged by $1.4 million for sewage treatment dating to 1996.

Sewage bills are based on the amount of water a customer uses, because it's assumed nearly all of that water becomes sewage. But the brewery contends millions of gallons of water have evaporated in the brewing process over the years--meaning it was charged for sewage that it never produced. "We have made our other payments on our water bill due date ... and now we are hoping that good sense prevails so we can work our way through this," attorney Robert O. Lampl said.

The situation is made more complicated because it also involves the Pittsburgh Water & Sewer Authority. Alcosan bills the Pittsburgh water authority for sewage service; the water authority pays that bill and invoices the brewery to be reimbursed.

Water authority officials have said they'll abide by any agreement the brewery and Alcosan reach--but in the meantime, city water officials say the brewery's refusal to pay impacts other customers.

The city water authority has threatened to shut off the brewery's water service many times in the dispute, which has dragged on for years.

"We're looking for an extension so we can continue to negotiate with Alcosan to reach what we think is a fair number on what we owe," the brewery said in a statement earlier this week. "It's not a case that we don't want to pay the bill. We're optimistic that we can reach an amiable agreement with Alcosan."