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Pennsylvania American Water increases commercial footprint via acquisition of municipal water and wastewater system in Northumberland County.

M2 EQUITYBITES-July 25, 2019-Pennsylvania American Water increases commercial footprint via acquisition of municipal water and wastewater system in Northumberland County

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Pennsylvania American Water reported on Wednesday that it has completed the acquisition of the water assets of the Municipal Authority of the Borough of Turbotville and wastewater assets from the Borough of Turbotville in Northumberland County for a combined purchase price of USD1m.

Following the sale of the water and wastewater systems, the Borough of Turbotville will pay off all outstanding debt.

The acquired Turbotville water system serves approximately 320 customers in Turbotville and a portion of Lewis Township, while the wastewater system serves approximately 290 customers in Turbotville.

In conjunction with the acquisition, the company plans to construct a new USD3.2m wastewater treatment plant, replacing the existing plant that was constructed in the 1980s. The new plant will be constructed near the existing plant with completion anticipated for 2022. It also plans to replace water meters for all customers.

Additionally, the company has adopted Turbotville's existing water rates, which will now be billed monthly, upon approval by the Pennsylvania Public Utility Commission (PUC). Wastewater customers will be billed at the company's wastewater rates, which are based on water usage and billed after water meters are read each month rather than Turbotville's flat bi-monthly rate.

Pennsylvania American Water provides water and/or wastewater services to 2.4m people and is a subsidiary of American Water (NYSE:AWK).

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Publication:M2 EquityBites (EQB)
Geographic Code:1U2PA
Date:Jul 25, 2019
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