Pennsylvania-American to be regional water supplier for southwest Butler County

Today, Pennsylvania-American Water Company closed on a $4.7 million low interest loan and the purchase of an industrial park water system.

BUTLER, Pa., Feb. 13, 2001 (PRNewswire) — Today, Pennsylvania-American Water Company (PAWC) closed on a $4.7 million low interest loan and the purchase of an industrial park water system, positioning the company to become the regional water supplier for southwestern Butler County.

The company has expanded its service territory steadily in western Pennsylvania and, specifically of late in the Butler, Beaver and Lawrence Counties, linking communities that share the same problem, poor quality wells.

Jackson Township, Butler County, is the latest community to approach PAWC, requesting that the company extend its service territory into the township to serve the existing customers and support future growth in the area. "Partnering with Jackson Township to bring quality water to the community, some of which was plagued with poor well supplies, was not a difficult decision," said Pennsylvania-American President and CEO Robert M. Ross. "The partnership made sense for the residents of Jackson Township and for PAWC, and we look forward to strengthening our ties to the community and becoming a good corporate neighbor."

Construction of the new water system in Jackson Township will begin this spring. The project is being accomplished through a $4.7 million low-interest loan that was secured by the company last year through the Pennsylvania Infrastructure Investment Authority (PENNVEST), a state authority responsible for aiding communities in need of water, sewer and other improvements.

Part of the loan is also being used to purchase a small water system that serves three industrial customers in the T.O.W. Associates Industrial Park at the western end of the township near Interstate 79 at Zelienople Borough. A 24-inch pipeline will link the company's existing operations in Ellwood City, Beaver County, to the industrial park. Additional extension of service will then provide water to about 1,000 people throughout Jackson Township.

The 20-year PENNVEST loan carries an interest rate of 1.619 percent for the first five years and 3.237 percent for the remaining 15 years.

Today's action solves a long-standing problem for the community, according to Jackson Township Supervisor Ralph DiLuigi who was instrumental in the community's 10-year search for quality water supplies.

"We attempted to work with some other municipalities over the years, but this project just seemed to come together well, and we'll get water in areas that just weren't possible with the other sources," said DiLuigi. "Pennsylvania-American is going to solve the water quality and quantity issues that we have in the township."

Over the last several years, Pennsylvania-American has purchased municipally-owned systems serving Summit and Center Townships in Butler County; Koppel Borough and Franklin Township in Beaver County; and Taylor Township in Lawrence County. Pennsylvania-American President and CEO Robert M. Ross attributes the company's significant growth in the area to a desire for quality water supplies and the ability of Pennsylvania-American to provide it.

"For Jackson Township, our work represents a significant financial investment in Butler County that will enhance economic development and quality of life," said Ross. "And just like many of our other acquisitions in this area and across the state, these communities invite PAWC to be their supplier because of the quality and expertise we provide."

Today's purchase follows last week's news of the Pennsylvania Public Utility Commission's approval of the company's plans to purchase the City of Coatesville Authority's water and wastewater assets in Chester and Lancaster Counties and Butler Township Area Water and Sewer Authority's water system in Butler County.

Pennsylvania-American Water Company, a subsidiary of American Water Works Company (NYSE: AWK - news), is the largest regulated water company in the United States. The Company owns and operates 32 surface water filtration plants with a combined capacity of 332 million gallons of water per day.

More than 7,700 miles of water transmission and distribution lines deliver high quality water to more than two million Pennsylvanians. American Water Works Company (NYSE: AWK - news), located in Voorhees, NJ, is the largest investor-owned, U.S. based water service enterprise. The Company's utility subsidiaries and affiliates now serve over 10 million people in 1,000 communities in 23 states.

SOURCE: Pennsylvania-American Water Company

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