York Water agrees to buy Jacobus wastewater system
(Photo / File)
The York Water Co. has agreed to buy the wastewater assets of the Jacobus Borough Sewer Authority in York County for an undisclosed sum.
The oldest investor-owned utility in the U.S. disclosed the Jacobus acquisition as part of its third-quarter earnings report on Friday.
The York-based company
said the Jacobus deal is contingent upon receiving regulatory approvals and is expected to close in the third quarter of 2019. York Water will pick up about 700 wastewater customers in Jacobus. The company already provides water service to those customers.
In its earnings report, the company said it is pursuing other water contracts and acquisitions in and around its service territory to grow its business.
York Water serves about 198,000 people in 48 municipalities in York and Adams counties.
York Water reported third-quarter net income of $3.8 million, down from $3.93 million in the third quarter of 2017.
The company said last year's federal tax cuts helped lower corporate income taxes. However, the company was required by the Pennsylvania Public Utility Commission to pass on the tax savings to customers in the form of lower rates, so revenue has been lower. York Water also said it has had higher operation and maintenance expenses this year.
The company also has a pending rate case with the PUC. In June, the company asked to increase base water rates by 13.1 percent or $6.4 million, and base wastewater rates by 25 percent or $288,623. Officials said the rate increase will help fund about $77 million in capital investments - some of which have been made since a 2013 rate filing by the company and others that are planned through February 2020.