Pennsylvania American Water, the Derry Township-based subsidiary of American Water Works Co. Inc., has closed on its $23 million acquisition of New Cumberland’s wastewater system.
Announced earlier this year, the deal affects about 3,100 customers in the borough. Pennsylvania American Water also has hired four borough employees who operate the wastewater system.
The deal will allow the borough to eliminate about $16 million in outstanding debt, plus it relieves New Cumberland of future wastewater treatment costs and capital investments, officials said.
The utility company has adopted existing wastewater rates, though bills will now be paid monthly rather than quarterly.
Additionally, Pennsylvania American Water has agreed not to change wastewater rates any earlier than Jan. 1, 2018. The company also plans to invest $2 million in system improvements over the next five years.
The New Cumberland deal is one of several recently made or announced by Pennsylvania American Water. The company previously acquired the wastewater system in nearby Fairview Township.