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Pennsylvania American Water acquires Steelton Borough Authority Water System

  • Pennsylvania American Water acquires Steelton Borough Authority Water System
    Pennsylvania American Water $50 million plant next week. Photo: Pennsylvania American Water

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American Water
American Water provides high-quality water and wastewater services to approximately 15 million people in more than 1,600 communities in the United States as well as parts of Canada.
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Pennsylvania American Water, a subsidiary of American Water, announced that it has acquired the water assets of the Steelton Borough Authority in Dauphin County. The purchase price for the system, which serves nearly 2,400 customers, was $21.75 million.

“We welcome our new Steelton customers and look forward to working with the community on long-term water infrastructure solutions for this area,” said Pennsylvania American Water President Mike Doran. “The purchase not only provides financial benefits and rate stability for Steelton, but it also aligns perfectly with our existing water service territory here in the midstate.”

The sale of the water system is expected to allow the borough to eliminate its existing water debt, build up budget reserves, and invest in capital projects. Effective today, all seven of Steelton’s employees, represented by AFSCME District Council 90, are now employees of Pennsylvania American Water.

“We are proud of the hard work and rich history of the Steelton Water System and, today, leave it in more than capable hands,” said Allan Ausman, chair of the Steelton Water Authority. “Pennsylvania American Water’s investment in our system brings Steelton into the 21st century and ensures customers will have reliable, high-quality water service into the future.”

As approved by the Pennsylvania Public Utility Commission (PUC), the company has adopted Steelton’s existing water rates, which will now be billed monthly. The company’s rates and rules of service are regulated by the PUC and are posted on the company’s website.

This sale was executed under Pennsylvania’s Act 12 statute, which allows municipalities to sell water and wastewater systems for a price based on the fair market value of the facilities. Prior to the passage of Act 12, the valuation process was based on assessing the system’s original cost at the time of construction – which may be 50 years old or more – less depreciation and contributed property. “Act 12 allows municipalities the opportunity to receive a purchase price that is more in line with the current value of its system assets,” said Doran.

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