MECHANICSBURG, PA — Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), has finalized the acquisition of the wastewater collection system assets from Sadsbury Township in Lancaster County. This system currently serves around 250 customer connections.
Justin Ladner, President of Pennsylvania American Water, expressed enthusiasm about the acquisition, stating, “Pennsylvania American Water couldn’t be more pleased to welcome the residents of Sadsbury Township as new wastewater customers. We look forward to providing this community with safe, reliable service by delivering on our technical expertise and extensive wastewater experience.”
The $990,000 purchase, approved by the Pennsylvania Public Utility Commission (PUC) on September 12, 2024, allows Pennsylvania American Water to adopt the current rates for Sadsbury residents. Any future rate changes will need PUC review and approval, ensuring regulatory oversight.
Over the next six years, Pennsylvania American Water plans to invest more than $1.5 million in improving the Sadsbury Township wastewater collection system. Planned upgrades include replacing wastewater mains and manholes, enhancing technology and control systems, and upgrading lift stations to ensure reliable service.
The Sadsbury Township commissioners supported the sale, citing the superior financial resources and professional expertise of Pennsylvania American Water. They noted, “The township approved the sale for several reasons. The greater financial resources and the professional expertise of Pennsylvania American Water far surpass the ability of the township to operate and provide the much-needed investment in the wastewater system, particularly as it relates to ever-increasing environmental and regulatory compliance matters.” Additionally, they highlighted that the sale would bolster the township’s financial security by mitigating the risks and unforeseen costs associated with managing a wastewater system.
This acquisition marks a significant step toward enhancing infrastructure and service quality for the residents of Sadsbury Township, aligning with Pennsylvania American Water’s efforts to deliver safe and reliable wastewater services.
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