Lancaster County wastewater system assets acquired by Pennsylvania American Water

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Pennsylvania American Water has completed the acquisition of the wastewater collection system assets of Sadsbury Township in Lancaster County. 

The $990,000 purchase was approved by the Pennsylvania Public Utility Commission (PUC) on Sept. 12. In accordance with the PUC’s approval, Pennsylvania American Water will adopt the rates being charged to Sadsbury residents. As the PUC regulates the company’s rates and rules and regulations of service, future rate changes will require the PUC’s review and approval. 

“Pennsylvania American Water couldn’t be more pleased to welcome the residents of Sadsbury Township as new wastewater customers,” Pennsylvania American Water President Justin Ladner said in a statement. “We look forward to providing this community with safe, reliable service by delivering on our technical expertise and extensive wastewater experience.” 

A subsidiary of American Water, Pennsylvania American Wate services approximately 2.3 million people. The newly acquired collection system serves approximately 250 customer connections, according to a release. Pennsylvania American Water offers multiple customer assistance programs. For qualifying wastewater customers, the program offers grants of up to $500 per year and discounts of 37% to 85% on the total wastewater charges. 

Pennsylvania American Water looks to invest more than $1.5 million in Sadsbury Township wastewater collection system improvements over the next six years, per the release. The improvements include wastewater main and manhole replacements, technology and control systems, and lift station upgrades. 

“The township approved the sale for several reasons,” said Sadsbury Township commissioners. “The greater financial resources and the professional expertise of Pennsylvania American Water far surpass the ability of the township to operate and provide the much-needed investment in the wastewater system, particularly as it relates to ever-increasing environmental and regulatory compliance matters. 

“Additionally, the associated risks of managing a wastewater system and their unforeseen costs were a major factor in transferring the system to Pennsylvania American Water. The sale proceeds will greatly enhance the long-term financial security of the township as well,” added Sadsbury Township commissioners.