Pennsylvania American Water Signs Agreement to Purchase City of York Wastewater System

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has signed an agreement with the York City Sewer Authority to purchase the wastewater system assets of the City of York in York County for $235 million. The City’s wastewater system directly and indirectly serves more than 45,000 connections.

“Pennsylvania American Water looks forward to becoming the wastewater provider for the City of York and surrounding communities and delivering safe, reliable service that meets or surpasses all regulations and protects the environment,” said Pennsylvania American Water President Mike Doran. “We are committed to being an excellent community partner and delivering on our infrastructure investment, technical expertise and decades of wastewater experience while providing the city with vital funding for this community for years to come.”

The agreement was approved by the York City Council on March 2 and by the York City Sewer Authority on March 24.

“With this agreement, York’s future is bright – free from the debt and financial pain that have held us back for so long,” said York Mayor Michael Helfrich, noting that the sale will provide much-needed revenues to the city, averting devastating tax increases and cuts to essential services while also retiring long-term debts. “This is a new day for York, one filled with an unwavering optimism as our residents and businesses can finally breathe a sigh of relief for the first time in decades.”

As part of the agreement, Pennsylvania American Water will request approval to preserve York City’s current wastewater rates for a minimum of three years, offer employment to all of the city’s wastewater system employees, establish an in-person customer service center in York, provide an up-front deposit of $20 million, and contribute at least $50,000 in donations to nonprofit organizations serving the city and its residents. The company will also continue to provide contracted wholesale wastewater treatment and disposal for the municipalities of Manchester Township, West Manchester Township, York Township, North York Borough, West York Borough, Spring Garden Township and Springettsbury Township and looks forward to developing strong partnerships that meet the needs of all customers, including those outside the city.