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Pennsylvania American Water Signs Agreement to Purchase Farmington Township’s Water and Wastewater Systems

MECHANICSBURG, Pa. , June 08 /Businesswire/ - Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has signed an agreement with Farmington Township, Clarion County, to purchase the township’s water and wastewater systems for $5.545 million. The systems serve 1,017 customers in Farmington Township.

“Pennsylvania American Water has been serving Farmington Township as a bulk water customer for decades, and we look forward to operating the water distribution system and becoming the wastewater provider for this community,” said Pennsylvania American Water President Justin Ladner. “Farmington residents will join the more than 2.4 million people across the Commonwealth that already rely on Pennsylvania American Water to expertly operate, manage and invest in their water and wastewater services.”

Farmington Township explored the potential sale of its water and wastewater systems for the last year and a half, citing that proceeds from the sale would be used to pay off debt and fund other township capital improvement projects. The agreement follows a recent vote by the Township to accept Pennsylvania American Water’s offer.

“Throughout this process, Pennsylvania American Water has reaffirmed its long-standing reputation as an excellent community partner who is dedicated to providing high-level service,” said Matt Sherbine, Township Supervisor. “The sale of our water and wastewater systems will unburden the Township of having to continually address regulatory issues and allow the experts at Pennsylvania American to make needed investments in an aging system, while enabling our community to focus on more important needs of our citizens.”

Upon ownership, Pennsylvania American Water plans to invest over $3 million for system improvements to meet regulatory, safety and security standards.

As part of the agreement, Pennsylvania American Water will adopt the township’s current water and wastewater rates. The company’s rates are regulated by the Pennsylvania Public Utility Commission (PUC), and any future rate changes would have to be reviewed and approved by the PUC. Pennsylvania American Water offers grants and discounted services to its low-income wastewater customers who qualify through its H2O Help to Others Program.

Pennsylvania American Water and Farmington Township will seek approval of the acquisition from the PUC and the Pennsylvania Department of Environmental Protection. The transaction is expected to be complete in 2024.

About Pennsylvania American Water

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 wastewater services to approximately 2.3 million people.

About American Water

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 approximately 6,500 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable, and reliable water services to our customers to help keep their lives flowing. For more information, visit and Follow American Water on Twitter, Facebook and LinkedIn.

STORY TAGS: Contract/Agreement, Public Policy/Government, State/Local, Environment, Utilities, Environmental Health, Energy, United States, North America, Pennsylvania,


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