Pennsylvania American Water Signs Agreement to Purchase Foster Township West End Wastewater System

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has signed an agreement with Foster Township, Luzerne County, to purchase its West End wastewater collection system for $3.75 million. The system serves approximately 600 customers within the villages of Highland, Youngstown, Upper Lehigh the areas of Woodside and Grove within the township.

“For many years, our company and our employees have been providing reliable water service in Luzerne County, and we are excited to be selected to provide wastewater service to Foster Township,” said Pennsylvania American Water President Mike Doran. “We look forward to adding the township’s customers to the more than 77,000 households and businesses across the Commonwealth that already rely on Pennsylvania American Water to expertly operate, manage and invest in their wastewater services.”

Foster Township initially issued a request for bids in June 2020 for the potential sale of its wastewater collection systems, citing that proceeds from the sale would be invested and used to fund other township capital improvement projects. The agreement follows a recent vote by Foster Township’s Board of Supervisors to accept Pennsylvania American Water’s bid.

Upon ownership, Pennsylvania American Water plans to invest approximately $1.28 million in upgrades to improve the system, including targeted improvements to address inflow and infiltration, new technology and control systems, and safety and security improvements at the system’s four pump stations.

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

Pennsylvania American Water and Foster Township will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and the Pennsylvania Department of Environmental Protection. The transaction is expected to be complete by the end of 2021.

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/or wastewater services to approximately 2.4 million people. 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 more than 7,000 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to help make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

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"For many years, our company and our employees have been providing reliable water service in Luzerne County, and we are excited to be selected to provide wastewater service to Foster Township." -@paamwater president Mike Doran on today's announcement