Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it 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 Waters 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 provides water service for the majority of the townships 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 Townships existing wastewater rates. Beginning in April, customers will receive a monthly bill with combined water and wastewater charges. The companys rates and rules of service are regulated by the PUC and are posted on the companys 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.
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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.
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 more than 14 million people in 46 states and Ontario, Canada. 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.
This release contains forward looking statements, including, among others, our plan to continue our long-term strategy of capital investment in our systems. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, changes in regulations or regulatory treatment and availability and the cost of capital. We undertake no obligation to publicly update or revise any forward-looking statement.
Pennsylvania American Water