Pennsylvania American Water acquires Sadsbury Township wastewater assets

American Water subsidiary Pennsylvania American Water has acquired the wastewater system assets of Sadsbury Township in Chester County, US for about $8.6m.

The latest transaction marks Pennsylvania American Water’s second acquisition to close under recent legislation as part of which municipalities can sell water and wastewater systems for a price based on the fair market value of the system.

The newly acquired wastewater system provides service to about 1,000 customers.

Pennsylvania American Water president Jeffrey McIntyre said: “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.”

The company has implemented Sadsbury Township’s existing wastewater rates as approved by the Pennsylvania Public Utility Commission (PUC).

Sadsbury Township Board of Supervisors chairman David Reynolds said: “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.”

Pennsylvania American Water signed agreements last year to acquire the wastewater and/or water assets of Exeter Township, Berks County; Steelton Borough Authority, Dauphin County.

The company also agreed to acquire assets of Delaware Sewer Company, Pike County; the Borough of Turbotville, Northumberland County.

Pennsylvania American Water provides quality water and wastewater services to about 2.4 million people.

At present, it operates wastewater systems in Adams, Allegheny, Beaver, Butler, Chester, Clarion, Cumberland, Lackawanna, Monroe, Northumberland, Pike, Washington and York counties.