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Steelton sells water system for $22.5M

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The Steelton Borough Authority is selling its water system for $22.5 million to Pennsylvania American Water, a private-sector operator based in Derry Township.

The authority initially approved a sale in August but still needs approval from state regulators. The transaction is expected to close in the third quarter of 2019.

In a press release, Pennsylvania American said it plans to invest $36 million over the next 10 years to improve the Steelton system, which serves nearly 2,400 residential, commercial and industrial customers. The company also said it would extend job offers to all current employees.

"We are well-prepared to bring both the technical expertise and financial resources needed to ensure the system addresses all the regulatory challenges it faces now and in the future," said Jeffrey L. McIntyre, Pennsylvania American's president,

The Steelton system is one of several Pennsylvania American has snapped up this year.

In September, the company paid nearly $62,000 for a wastewater system in Pike County. It also has bought systems in Berks and Northumberland counties.

Pennsylvania American is a subsidiary of New Jersey-based American Water. It provides water and/or wastewater services to roughly 2.4 million people in Pennsylvania

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