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Pennsylvania American Water acquires Fairview Township’s wastewater system

Fairview Township property owners just received a holiday bonus.

The York County municipality has agreed to sell its wastewater system to Derry Township-based Pennsylvania American Water for $16.8 million.

As a result, the township will cut property taxes by 50 percent in 2016, said Chairman Robert Stanley Jr. “The sale’s proceeds will help pay off approximately $21 million in sewer debt and avoid an anticipated $14 million in additional debt that might have been incurred to complete planned projects.”

Pennsylvania American Water, the largest water utility in the state, has agreed to invest $13 million in system improvements and reimburse the township for up to $1 million for a sewer line relocation project related to the Pennsylvania Turnpike.


The Fairview Township system covers about 4,000 customers, including more than 200 businesses and commercial accounts, according to the utility. Pennsylvania American Water already provides water service to the township.


“The acquisition provides a long-term wastewater solution and financial relief for the local community, and is also a perfect fit within our existing water footprint,” Pennsylvania American Water President Kathy Pape said.


The utility also will retain four township employees who operated the wastewater system, plus it will honor existing wastewater rates through 2017.


The $13 million in capital improvements will include the installation of about 23,500 feet of new wastewater lines, which will serve about 200 properties. Tap-in fees also will be reduced to $4,000 per equivalent dwelling unit from $9,500.


Pennsylvania American Water is a subsidiary of American Water Works Co. Inc., and trades its shares on the New York Stock Exchange under the ticker symbol AWK.

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