Pennsylvania American Water buys Montco wastewater system for $13.75M

Mechanicsburg-based Pennsylvania American Water, the largest investor-owned utility in the state, has completed its purchase of the wastewater system assets of Upper Pottsgrove Township, Montgomery County, which serves approximately 1,550 customers.

The $13.75 million acquisition was approved in September 2021 by the Pennsylvania Public Utility Commission. As part of that approval, Pennsylvania American Water will keep the existing wastewater rates and transition customers to a monthly billing cycle.

The township agreed to sell its wastewater system to the utility in May 2020.

Upper Pottsgrove’s commissioners said in a release that “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 proceeds of the sale will greatly enhance the long-term financial security of the township as well.”

The utility’s president, Mike Doran, added: “Pennsylvania American Water couldn’t be more pleased to welcome the residents of Upper Pottsgrove Township as new wastewater customers. We look forward to providing this community with safe, reliable service by delivering on our infrastructure investment, technical expertise and decades of wastewater experience.”

Over the next five years, Pennsylvania American Water, a subsidiary of American Water, plans to invest more than $4 million in improvements to the wastewater system, including main and manhole replacements, technology and control system upgrades, lift station upgrades and meter replacements.

Last month, the utility completed acquisition of York city’s wastewater system. It is now the wastewater provider for nearly 225,000 Pennsylvanians.

Paula Wolf is a freelance writer