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Pennsylvania American Water to buy Sadsbury Township sewer system
Listen to this articleMechanicsburg-based Pennsylvania American Water, a subsidiary of American Water, announced today that it has signed an agreement to purchase the sanitary sewer collection system assets of Sadsbury Township Municipal Authority for $990,000.
The system serves approximately 250 properties in Sadsbury Township, Lancaster County, with sanitary sewer treatment service provided by adjacent Christiana Borough and Salisbury Township through contractual arrangements.
The agreement was approved Nov. 1, 2022, by the Sadsbury Township Board of Commissioners. A release noted that the municipal authority has faced cost, debt, management and billing challenges, “and has had limited ability to support needed expansion of its system. Sadsbury Township … will receive the proceeds from this proposed sale, which will allow the township to reduce debt.”
Pennsylvania American Water expects to continue to contract with Sadsbury Township’s current sanitary sewer treatment providers. Within the first five years of ownership, the company plans to invest approximately $1.3 million in improvements to upgrade sewer collection lines and pump stations.
The transaction is expected to close this year, pending regulatory approvals from the Pennsylvania Public Utility Commission and the Pennsylvania Department of Environmental Protection.
“As the drinking water service provider to several southeastern Lancaster County communities, we are well positioned to serve Sadsbury Township through experienced, professional employees who can leverage the resources of our other local operations,” Pennsylvania American Water President Justin Ladner said in the release.
“This acquisition is a natural fit, and we are glad to welcome Sadsbury Township to the Pennsylvania American Water family.”
Pennsylvania American Water is the largest investor-owned water utility in the state, providing water and wastewater services to approximately 2.4 million people.
Paula Wolf is a freelance writer
