PA American Water agrees to acquire water, wastewater system in Northumberland County

July 12, 2018
The purchase price of approximately $1 million includes acquiring the water and wastewater assets of the Borough of Turbotville.

HERSHEY, PA, JULY 12, 2018 -- Pennsylvania American Water, a subsidiary of American Water has signed an agreement to acquire the water and wastewater systems of Turbotville Borough in Northumberland County. The purchase price of approximately $1 million includes acquiring the water assets of the Municipal Authority of the Borough of Turbotville and wastewater assets from the Borough of Turbotville. The water system serves approximately 320 customers in the Borough and a portion of Lewis Township, while the wastewater system provides service to approximately 290 customers in Turbotville.

"The transaction represents another key step toward providing a more regional approach to water and wastewater service, which not only expands our customer base but also increases operational efficiency and capitalize on economies of scale," said Pennsylvania American Water President Jeffrey L. McIntyre. The company currently owns and operates the nearby Milton water system, with nearly 12,700 customers, and the McEwensville water and wastewater systems, with a combined 260 customers. The Milton and McEwensville systems are less than four miles from Turbotville.

Pennsylvania American Water and Borough officials will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and other necessary approvals from the Pennsylvania Department of Environmental Protection. The company expects to close the transaction once regulatory approvals are obtained.

Under the purchase agreement, the company plans to adopt the existing water rates of the municipal authority, while the Borough agrees to enact Pennsylvania American Water's Rate Zone 1 wastewater rates when the transaction closes. The company's rates are regulated by the PUC and future rate changes would have to be reviewed and approved by the PUC.