Mechanicsburg-based Pennsylvania American Water announced that an agreement has been reached for it to acquire Appalachian Utilities Inc., a private, investor-owned system serving approximately 1,450 Clinton County customers in Avis Borough, Pine Creek Township and Dunnstable Township.
This system is near Pennsylvania American Water’s Milton, Nittany and Boggs water systems. Under the transaction terms, an affiliate of Pennsylvania American Water will merge with Appalachian and, subsequently, Appalachian will merge into Pennsylvania American Water.
Pennsylvania American Water plans to invest more than $6.5 million into the system to upgrade aging water infrastructure.
Approval of the acquisition is being sought from the Pennsylvania Public Utility Commission and Pennsylvania Department of Environmental Protection. The transaction is expected to be completed in late 2024.
Pennsylvania American Water will adopt Appalachian’s current rates at closing. Any future rate changes would have to be reviewed and approved by the PUC.
“Appalachian has served our customers proudly since 1995, and we are grateful for our partnership with the community over this time,” Frank Sargent Jr., president of Appalachian, said in a release. “We believe that this transaction with Pennsylvania American Water will ensure that our customers and employees are placed in the hands of another competent, community-minded utility partner going forward.”
Added Justin Ladner, president of Pennsylvania American Water: “We look forward to becoming the water service provider for these customers in Clinton County, and we appreciate that the leadership at Appalachian Utilities Inc. is entrusting us with this privilege. The system upgrades we plan to make will benefit area customers, and the acquisition will further promote regionalization and consolidation of our central Pennsylvania systems.”
Paula Wolf is a freelance writer