HERSHEY, Pa.--(BUSINESS WIRE)--Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has signed an agreement to acquire the wastewater assets of Sadsbury Township in Chester County. The total value of the transaction is approximately $9.25 million. The Sadsbury wastewater system serves approximately 1,000 customers.
"Our company and our employees have been the long-time water service provider for this community, and we are excited for the opportunity to be the future provider of wastewater service to our Sadsbury customers," said Pennsylvania American Water President Jeffrey McIntyre.
Pennsylvania American Water and the township will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and other necessary approvals from the Pennsylvania Department of Environmental Protection.
"This acquisition will enable us to bring a more regional approach to wastewater solutions for western Chester County, where our Coatesville Area Wastewater Treatment Plant already serves more than 6,000 local customers,” said McIntyre. “We can also capitalize on increased efficiencies and economies of scale while providing the technical expertise and financial resources needed to ensure that Sadsbury’s system complies with all environmental regulations.”
Under the purchase agreement, there will be no immediate change to customers’ wastewater rates. The company’s rates are regulated by the PUC and future rate changes would have to be reviewed and approved by the PUC.
Pennsylvania American Water’s purchase of the sewer system will enable Sadsbury Township to eliminate all debt, which is approximately $2.5 million.
The company expects to close the transaction by the end of the 2018, pending regulatory approvals.
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 6,900 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 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.