The acquisition of the Exeter’s wastewater system is the Pennsylvania American Water’s fifth acquisition in 2019
Pennsylvania American Water, a subsidiary of American Water has announced the acquisition of a wastewater system from Exeter Township in Berks County, Pennsylvania, for $93.5m.
The acquisition of the Exeter’s wastewater system which serves more than 9,000 customers is the Pennsylvania American Water’s fifth acquisition in 2019.
American Water’s subsidiary has adopted Exeter’s existing sewer rates for which the customers will now be billed monthly.
The company’s rates and rules of service are approved and regulated by the Pennsylvania Public Utility Commission (PUC).
Pennsylvania American Water to invest $3m in Exeter Township’s water and wastewater infrastructure improvements
Pennsylvania American Water President Mike Doran said: “We welcome this opportunity to provide our new customers the same high level of quality wastewater service that our current Exeter Township water customers have come to expect from our company.
“We will now commit our resources to the wastewater system improving environmental compliance and dependability.”
The firm is planning to invest $3m in water and wastewater infrastructure improvements within Exeter Township.
Exeter Township manager John Granger said: “The sale of the wastewater treatment plant and collection system to Pennsylvania American Water is a great benefit to current and future residents of Exeter.
“The sale presents a unique opportunity to secure the finances of the township for residents who presently live here, while also planning for those who come later.
“We intend to use proceeds from the sale to eliminate all wastewater debt, make deposits into pension funds, and implement new tax exemptions – providing tax savings for all eligible residents.”
The purchase of the system was executed under Pennsylvania’s Act 12 statute, which allows municipalities to sell water and wastewater systems for a price based on the market value of the facilities.
Pennsylvania American Water is claimed to be the largest investor-owned water and wastewater utility in the Pennsylvania that provides water and/or wastewater services to about 2.4m people.
Earlier in September this year, the company completed a new $10.5m (£8.44m) pipeline to extend service to Shenango Township residents in Lawrence County.