Pennsylvania American Water Signs Agreement to Purchase Greene County Water System

Source: www.gulfoilandgas.com 7/24/2023, Location: North America

Pennsylvania American Water, a subsidiary of American Water, announced that it signed an agreement with East Dunkard Water Authority to purchase its water system assets for $5 million. The system serves approximately 1,600 customers in Dunkard and Greene Townships and portions of Cumberland, Monongahela, Perry, and Whitely Townships, all located in Greene County, Pennsylvania – expanding the company’s footprint to 38 counties across the Commonwealth.

The East Dunkard Water Authority has a history of water quality, service, and reliability issues due to aging infrastructure. The acquisition provides a long-term solution for a water system under a Pennsylvania Department of Environmental Protection (DEP) consent order since 2020.

“We are committing the technical expertise and resources needed to satisfy the terms of the consent order and improve service for customers,” said Pennsylvania American Water President Justin Ladner. “The company plans to invest more than $17 million in this system, which will significantly improve the water treatment plant and overall system reliability.”

Pennsylvania American Water and the Authority have explored the potential sale of its water system for the past nine months. The agreement follows a recent vote by the authority to accept Pennsylvania American Water’s offer.

“The sale of our water system to Pennsylvania American Water will unburden the authority of having to correct deficiencies in our system that we simply couldn’t afford,” said Jerry Dorsey, East Dunkard Water Board chairman. “This transaction will allow Pennsylvania American Water to work with the DEP to efficiently address needed improvements and make significant capital investments in the system. Undoubtedly, these measures will ensure that our customers receive the high-quality product and service they rightfully deserve.”

Pennsylvania American Water will adopt the authority’s current rates as part of the agreement. The Pennsylvania Public Utility Commission (PUC) regulates the company's rates, and any future rate changes would have to be reviewed and approved by the PUC. Pennsylvania American Water offers grants and discounted services to customers who qualify through its H2O Help to Others Program.

Pennsylvania American Water and East Dunkard Water Authority will seek approval of the acquisition from the PUC and DEP. The transaction is expected to be completed in 2024.


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