Pennsylvania American Water signs agreements to purchase Valley Township water, wastewater systems

Pennsylvania American Water, a subsidiary of American Water, recently announced that it signed agreements to purchase the water and wastewater system assets of Valley Township in Chester County.

The township’s water system serves approximately 1,700 customers, and its wastewater system serves nearly 3,100 customers. Pennsylvania American Water currently provides a majority of the township’s water through a bulk municipal agreement and provides all of the wastewater treatment for the township’s wastewater system.

Pennsylvania American Water will acquire the township’s water and wastewater system assets for approximately $21.275 million.

“As the Coatesville region’s lead water and wastewater provider, we look forward to welcoming our neighbors in Valley Township into the Pennsylvania American Water family,” Pennsylvania American Water President Mike Doran said. “We currently have the privilege of serving more than 32,000 people in Chester and Lancaster counties through our Coatesville system, and we are well-positioned to deliver service to Valley Township through experienced, local, professional employees that can leverage the resources and expertise of the Commonwealth’s largest water and wastewater utility.”

The Valley Township Board of Supervisors has approved the agreements. Township officials said in a letter to residents that, without the acquisition, the maintenance needs of the township’s infrastructure would require the township to increase water and sewer rates significantly.

Pennsylvania American Water noted that it plans to invest in improvements to the water and wastewater systems to enhance their reliability and compliance. The company expects that the transaction will close in late 2020 or early 2021, pending regulatory approvals.

In 2019, Pennsylvania American Water acquired the wastewater and/or water assets of Exeter Township, Berks County; Steelton Borough Authority, Dauphin County; Sadsbury Township, Chester County; and the Borough of Turbotville, Northumberland County. The company also recently signed purchase agreements with Royersford Borough, Montgomery County, and the Borough of Kane Authority, McKean County. Pennsylvania American Water currently provides water and/or wastewater services to approximately 2.4 million people in Pennsylvania.