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Pennsylvania American Water Completes Acquisition of Valley Township Water and Wastewater Systems

Company plans to invest $5.8 million in system improvements

MECHANICSBURG, Pa.–(BUSINESS WIRE)–Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has completed the acquisition of the water and wastewater system assets of Valley Township, Chester County. The newly acquired water system provides service to nearly 1,700 customers and the wastewater system serves nearly 2,900 customers. Prior to the acquisition, Pennsylvania American Water provided a majority of Township’s water through a bulk municipal agreement and was the sole provider of wastewater treatment for the Township’s wastewater system.

As the Coatesville region’s leading water and wastewater provider, we look forward to directly serving our neighbors in Valley Township and we welcome them to the Pennsylvania American Water family,” said Pennsylvania American Water President Mike Doran. “We are well positioned to deliver service to the township’s residents through experienced, local, professional employees that can leverage the resources and expertise of the Commonwealth’s largest water and wastewater utility.”

Through 2025, Pennsylvania American Water plans to invest approximately $5.8 million in Valley Township water and wastewater system improvements. These improvements include upgrading or replacing water and wastewater mains, technology and control systems, pump station, and meters, among others. The company has a long and successful track record of acquiring water and wastewater systems facing significant capital investment needs and making the necessary investments to meet current and future environmental regulations.

The $21.275 million purchase was approved by the Pennsylvania Public Utility Commission (PA PUC). As part of the PA PUC’s approval, Pennsylvania American Water will adopt the existing Valley Township water and wastewater rates and will begin billing customers on a monthly rather than a quarterly basis. The PA PUC regulates the company’s rates, rules and regulations of service, therefore any future rate change will need to be reviewed and approved by the PA PUC.

The Township agreed to sell its water and wastewater systems to Pennsylvania American Water in December 2019 based on the decision that it was important to improve infrastructure, prepare resilient and responsive municipal services, and wisely invest for the Township’s future.

Valley Township residents and business will benefit from a larger scale, efficiently operated water and wastewater utility that brings expertise to our aging systems,” said Valley Township Chairwoman Patrice Proctor. “We will use the proceeds of this sale to take on other important capital projects, and will consider paying off the debt of our new municipal building.”

Pennsylvania American Water recognizes that some customers face circumstances that stretch their financial resources and offers financial assistance through the company’s longstanding H2O Help to Others program. For qualifying wastewater customers, the company offers grants of up to $500 per year and a 30 percent discount on the total wastewater charges. For qualifying water customers, it provides grants of up to $500 per year, an 85 percent discount on the monthly service fee, a 10 percent discount on the monthly volumetric charges, as well as water-saving devices and education.

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.4 million people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,000 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to help make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

Contacts

Media:
David Misner

External Affairs Manager

717-261-7525

david.misner@amwater.com

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