Pennsylvania American Water, a subsidiary of American Water has announced that it has acquired the water assets of the Municipal Authority of the Borough of Turbotville and the wastewater assets from the Borough of Turbotville in Northumberland County. The purchase price for both systems combined was $1 million. The water system serves approximately 320 customers in Turbotville and a portion of Lewis Township, while the wastewater system serves approximately 290 customers in Turbotville.
“The transaction represents another key step toward providing a more regional approach to water and wastewater service,” said Pennsylvania American Water President Jeffrey McIntyre. “The purchase expands our customer base, which allows us to increase our operational efficiency and capitalize on economies of scale for the benefit of all of our customers.”
The sale of the water and wastewater systems allows the Borough of Turbotville to pay off all outstanding debt.
“We are pleased to bring Pennsylvania American Water’s water and wastewater expertise and investment to the residents of Turbotville,” said Turbotville Borough Council President Francis Betz. “Our residents will continue to receive the same services that the Borough has offered, but Pennsylvania American Water will be able to perform needed upgrades to our water and sewer facilities, which the Borough just cannot afford to do. Furthermore, many of our residents may actually see their monthly bills go down.”
As approved by the Pennsylvania Public Utility Commission (PUC), the company has adopted Turbotville’s existing water rates, which will now be billed monthly. Wastewater customers will be billed at the company’s wastewater rates, which are based on water usage and billed after water meters are read each month rather than Turbotville’s flat bi-monthly rate. The company’s rates and rules of service are regulated by the PUC and are posted on the company’s website.
As part of the acquisition, Pennsylvania American Water plans to construct a new $3.2 million wastewater treatment plant, replacing the existing plant that was constructed in the 1980s. The new plant will be constructed near the existing plant with completion anticipated for 2022. The company also plans to replace water meters for all customers.
“We are committed to providing our new customers the same high level of customer service and quality water and wastewater service that our current customers are accustomed to receiving 24/7,” added McIntyre.
The company currently owns and operates the nearby Milton water system, with nearly 12,700 customers, and the McEwensville water and wastewater systems, with a combined 260 customers. The Milton and McEwensville systems are less than four miles from Turbotville.
