Mechanicsburg-based Pennsylvania American Water, a subsidiary of American Water, recently reached an agreement to purchase Appalachian Utilities, a private, investor-owned system, for an undisclosed amount.
Appalachian serves approximately 1,450 customers near Pennsylvania American Water’s existing Milton, Nittany, and Boggs water systems.
“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,” Pennsylvania American Water President Justin Ladner said. “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.”
Under the agreement, Pennsylvania American Water will invest more than $6.5 million to upgrade aging water infrastructure.
The companies now will seek approval from the Pennsylvania Public Utility Commission (PUC) and Pennsylvania Department of Environmental Protection to merge.
The PUC regulates utility rates and must approve any rate change. Pennsylvania American Water will adopt Appalachian’s current rates when the deal closes in late 2024.
Pennsylvania American Water is the largest investor-owned water utility in Pennsylvania, servicing approximately 2.3 million people. It offers grants and discounted services to customers who qualify through its H2O Help to Others Program.