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 water and
wastewater systems of Turbotville Borough in Northumberland County. The
purchase price of approximately $1 million includes acquiring the water
assets of the Municipal Authority of the Borough of Turbotville and
wastewater assets from the Borough of Turbotville. The water system
serves approximately 320 customers in the Borough and a portion of Lewis
Township, while the wastewater system provides service to approximately
290 customers in Turbotville.
"The transaction represents another key step toward providing a more
regional approach to water and wastewater service, which not only
expands our customer base but also increases operational efficiency and
capitalize on economies of scale," said Pennsylvania American Water
President Jeffrey L. McIntyre. The company currently owns and operates
the nearby Milton water system, with nearly 12,700 customers, and the
McEwensville water and wastewater systems, with a combined 260
customers. The Milton and McEwensville systems are less than four miles
Pennsylvania American Water and Borough officials will seek approval of
the acquisition from the Pennsylvania Public Utility Commission (PUC)
and other necessary approvals from the Pennsylvania Department of
Environmental Protection. The company expects to close the transaction
once regulatory approvals are obtained.
Under the purchase agreement, the company plans to adopt the existing
water rates of the municipal authority, while the Borough agrees to
enact Pennsylvania American Water’s Rate Zone 1 wastewater rates when
the transaction closes. 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, 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,