Essential Utilities unit acquires East Norriton wastewater assets

The Pennsylvania subsidiary of Essential Utilities has acquired the approximately 5,000-connection wastewater assets of East Norriton Township in Montgomery County, US.

The unit acquired East Norriton in a deal valued at $21m under Pennsylvania’s Act 12, fair market valuation legislation.

This legislation encourages consolidation in a fragmented water and wastewater industry and allows sharing of resources among a larger service area.

Essential Utilities CEO Chris Franklin said: “We’re pleased to add the East Norriton community to our growing wastewater footprint in Southeastern Pennsylvania.

“We’re looking forward to putting our engineering and construction expertise to work to complete roughly $16m in capital work over the next ten years.”

The acquisition of East Norriton is the second for Essential Utilities’ water and wastewater division this year.

In January, Essential Utilities’ Aqua Ohio acquired the City of Campbell’s water treatment plant and distribution system for $7.5m.

Recently, Aqua Pennsylvania obtained conditional acceptance of its application to acquire the Delaware County Regional Water Quality Control Authority’s (DELCORA) wastewater assets for $276.5m, from the Pennsylvania Public Utility Commission.

Aqua Pennsylvania Wastewater president Marc Lucca said: “We believe our planned infrastructure improvements will target sanitary sewer overflows and reduce extraneous flows by replacing, lining and repairing portions of the sewer collection system, and upgrading several pump stations.

“These capital projects will significantly improve operational efficiency and environmental conditions. These will yield cost savings over time and improve customer service.”

Essential Utilities provides water, wastewater and natural gas in the US and serves about five million people across ten states under the Aqua and Peoples brands.