Pennsylvania American Water acquires Chester County municipal sewer system

Expands wastewater footprint with acquisition, eliminates all debt for Sadsbury Township.

Mar 11th, 2019
Image courtesy: sadsburytwp.org
Image courtesy: sadsburytwp.org

MECHANICSBURG, PA, MARCH 11, 2018 -- Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), has acquired the wastewater system assets of Sadsbury Township in Chester County for a purchase price of approximately $8.6 million. The transaction marks Pennsylvania American Water's second acquisition to close under recent legislation that allows municipalities to sell water and wastewater systems for a price based on the fair market value of the system.

The newly acquired system provides wastewater service to approximately 1,000 customers. Pennsylvania American Water already provideswater service for the majority of the township's residents and businesses.

"We are very pleased to close another significant acquisition that further expands our wastewater footprint," said Pennsylvania American Water President Jeffrey McIntyre. "The purchase not only provides long-term wastewater solutions and financial benefits for the local community, but it also aligns perfectly with our existing water service territory."

As approved by the Pennsylvania Public Utility Commission (PUC), the company has adopted Sadsbury Township's existing wastewater rates. Beginning in April, customers will receive a monthly bill with combined water and wastewater charges. The company's rates and rules of service are regulated by the PUC and are posted on the company's website.

"The sale of our wastewater system to Pennsylvania American Water benefits Sadsbury Township residents, as the proceeds will allow the Township to eliminate its debt, avoid future costs for necessary system maintenance and repair, and invest in the future of the Township," said Sadsbury Township Board of Supervisors Chairman David Reynolds.

In 2018, Pennsylvania American Water signed agreements to acquire the wastewater and/or water assets of Exeter Township, Berks County; Steelton Borough Authority, Dauphin County; Delaware Sewer Company, Pike County; the Borough of Turbotville, Northumberland County. The company recently acquired the wastewater assets of Fairview Township, York County, the Scranton Sewer Authority, Lackawanna County and the Municipal Authority of the City of McKeesport, Allegheny County. Pennsylvania American Water currently operates wastewater systems in Adams, Allegheny, Beaver, Butler, Chester, Clarion, Cumberland, Lackawanna, Monroe, Northumberland, Pike, Washington and York counties.

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