Pennsylvania American Water Signs Agreement to Purchase City of York Wastewater System - Seite 2

Upon ownership, Pennsylvania American Water will make necessary treatment and collection system upgrades to improve the system. Specifically, the company plans to make significant investments toward reducing inflow and infiltration and removing phosphorus, which will improve the overall water quality in Codorus Creek and, ultimately, the Chesapeake Bay Watershed.

Pennsylvania American Water will seek all necessary approvals from its regulators and expects to close the transaction by the end of 2021 or the beginning of 2022. 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.

The purchase agreement between Pennsylvania American and the City was executed under Act 12, which allows municipalities to sell their water and wastewater systems for a price based on the fair market value of the facilities. Enacted in 2016, this statute gives municipalities the opportunity to receive a purchase price that is more reflective of the current value of their system assets.

In 2020, Pennsylvania American Water acquired the wastewater assets of Borough of Kane Authority in McKean County and the water assets of Winola Water Company in Wyoming County, adding approximately 2,100 new customers. The company also signed purchase agreements with Brentwood Borough in Allegheny County, Valley Township in Chester County, and Royersford Borough and Upper Pottsgrove Township in Montgomery County, which will add another 10,300 wastewater customers and 1,700 water customers to the company’s customer base upon closing. Pennsylvania American Water also has a proven track record of successfully acquiring and managing large municipal wastewater systems like York City Sewer Authority, including the Municipal Authority of the City of McKeesport in 2017 and the Scranton Sewer Authority in 2016.

About Pennsylvania American Water

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 7,000 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to help make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.