Pennsylvania American Water, a subsidiary of American Water, announced that it has completed a deal with the City of York to acquire the city’s wastewater system assets, making it Pennsylvania American Water’s largest wastewater system acquisition to date.
The newly acquired wastewater system in York County serves more than 45,000 customer connections, including approximately 14,000 direct customers in the city and bulk service to indirect customers in the neighboring Townships of Spring Garden, Manchester, West Manchester, York and Springettsbury and the Boroughs of North York and West York.
“Pennsylvania American Water is proud to become the wastewater service provider for the City of York and surrounding communities, and to deliver safe, reliable service that protects public health and the environment,” said Pennsylvania American Water President Mike Doran. “We remain committed to being an excellent community partner and delivering on our infrastructure investment, technical expertise and decades of wastewater experience.”
Over the next five years, Pennsylvania American Water plans to invest approximately $17.5 million in wastewater system improvements in the York area. These include wastewater treatment process improvements, technology and control system upgrades, and wastewater main rehabilitation projects.
The city agreed to sell its wastewater system to Pennsylvania American Water in April 2021, citing that the proposed sale was important to improve the city’s infrastructure, provide for resilient and responsive municipal services, and support the city’s future. With the acquisition, Pennsylvania American Water also welcomed 23 of the system’s employees to its local team.
“This is a transformative moment for the City of York,” said York Mayor Michael Helfrich. “Today is the start of a new day for our city. With this sale now complete, we can clear all of York’s long-standing debts and build a nest egg for the city’s long-term fiscal health. For our residents and businesses who are proud to call York home, this sale brings stability and hope for our future.”
As part of the acquisition, Pennsylvania American Water will adopt the existing City of York wastewater rates for three years and will continue billing customers on a monthly basis. The Pennsylvania Public Utility Commission (PUC) regulates the company’s rates, rules and regulations of service; therefore, any future rate changes will require review and approval by the PUC. The rates for bulk agreements with neighboring municipalities will also remain in place for three years.
