Pennsylvania American Water Signs Agreements to Purchase Valley Township Water and Wastewater Systems
MECHANICSBURG, Pa.--(BUSINESS WIRE)--Dec 18, 2019--
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced that it has signed agreements to purchase the water and wastewater system assets of Valley Township in Chester County for approximately $21.275 million. The Township’s water system serves nearly 1,700 customers and its wastewater system serves nearly 3,100 customers in Valley Township. Pennsylvania American Water already provides a majority of Township’s water through a bulk municipal agreement and is the sole provider of wastewater treatment for the Township’s wastewater system.
“As the Coatesville region’s lead water and wastewater provider, we look forward to welcoming our neighbors in Valley Township into the Pennsylvania American Water family,” said Pennsylvania American Water President Mike Doran. “We currently have the privilege of serving more than 32,000 people in Chester and Lancaster counties through our Coatesville system, and we are well positioned to deliver service to Valley Township through experienced, local, professional employees that can leverage the resources and expertise of the Commonwealth’s largest water and wastewater utility.”
The agreements were approved by the Valley Township Board of Supervisors on Dec. 17. In a recent letter to Township residents, Township officials acknowledged that the age and maintenance needs of the Township’s infrastructure would otherwise cause the Township to significantly raise water and sewer rates. It further noted that the proceeds of the sale would “represent dollars which can be used toward improving roads and bridges, parks and recreation, preparing resilient and responsive municipal services, and wisely investing for the Township’s future.”
Pennsylvania American Water will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and other necessary approvals from the Pennsylvania Department of Environmental Protection. Pennsylvania American Water plans to make necessary investments in water and wastewater improvements to improve the reliability and compliance of the systems. The company expects to close the transaction in late 2020 or early 2021, pending regulatory approvals.
The purchase agreement between Pennsylvania American and the Township was executed under Act 12, which allows municipalities to sell their water and wastewater systems for a price based on the fair market value of the facilities. Enacted in 2016, this statute gives municipalities the opportunity to receive a purchase price that is more reflective of the current value of their system assets.
In 2019, Pennsylvania American Water acquired the wastewater and/or water assets of Exeter Township, Berks County; Steelton Borough Authority, Dauphin County; Sadsbury Township, Chester County and the Borough of Turbotville, Northumberland County, adding a total of 10,300 new wastewater customers and 2,700 water customers to the company’s customer base. The company has also recently signed purchase agreements with Royersford Borough, Montgomery County (1,600 wastewater customers) and the Borough of Kane Authority, McKean County (2,100 wastewater customers).
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.4 million people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,100 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 14 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.
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CONTACT: Maggie Sheely
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KEYWORD: PENNSYLVANIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: ENERGY NATURAL RESOURCES UTILITIES OTHER NATURAL RESOURCES
SOURCE: Pennsylvania American Water
Copyright Business Wire 2019.
PUB: 12/18/2019 04:35 PM/DISC: 12/18/2019 04:35 PM