Pennsylvania American Water agrees to acquire Towamencin’s sewer assets for $104 million

(UI) — Pennsylvania American Water has entered an agreement to purchase all the assets related to the wastewater system of the Towamencin Municipal Authority, the company said on March 24.

Pennsylvania American Water already provides reliable water and wastewater services to approximately 2.4 million people in the Commonwealth. The Towamencin Municipal Authority serves more than 6,300 wastewater customers.

“As the Commonwealth’s largest water and wastewater provider, we have a proven history of working collaboratively with local partners to deliver the best long-term solution for their water and wastewater utility services,” said Pennsylvania American Water President Justin Ladner.

Earlier this month, Florida-based electric utility company NextEra Energy declared its intention to enter the wastewater industry, but it later withdrew from a $115 million agreement to buy the sanitary sewer system, treatment facility, and all assets of Towamencin Township, North Penn Now reported.

Instead, the company assigned their contractual rights and obligations to Pennsylvania American Water, who is offering to purchase the sewer assets for $104 million, supervisors Chairman Chuck Wilson announced at a board meeting held on March 1.

“We are very pleased that Pennsylvania American Water will be our new wastewater partner,” Wilson said. “They are widely regarded for their operation of wastewater systems, customer service, and environmental stewardship.”

Pennsylvania American Water will seek all necessary approvals from its regulators and expects to close the transaction by mid-year 2024. The company’s rates are set by the Pennsylvania Public Utility Commission (PUC), and any future rate changes would have to be reviewed and approved by the PUC.

 

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