Pennsylvania American Water, a subsidiary of American Water, has completed a deal with the City of York to acquire the City’s wastewater system assets, making it Pennsylvania American Water’s largest wastewater system acquisition to date. The newly acquired wastewater system in York County serves more than 45,000 customer connections, including approximately 14,000 direct customers in the city and bulk service to indirect customers in the neighboring Townships of Spring Garden, Manchester, West Manchester, York and Springettsbury and the Boroughs of North York and West York.
“Pennsylvania American Water is proud to become the wastewater service provider for the City of York and surrounding communities, and to deliver safe, reliable service that protects public health and the environment,” said Pennsylvania American Water President Mike Doran. “We remain committed to being an excellent community partner and delivering on our infrastructure investment, technical expertise and decades of wastewater experience.”
Over the next five years, Pennsylvania American Water plans to invest approximately $17.5 million in wastewater system improvements in the York area. These include wastewater treatment process improvements, technology and control system upgrades and wastewater main rehabilitation projects. The company has a long and successful track record of improving water and wastewater systems facing significant capital investment needs and making the necessary investments to meet current and future environmental regulations. Following today’s acquisition, Pennsylvania American Water will be the wastewater service provider for more than 220,000 customers across the Commonwealth.
The city agreed to sell its wastewater system to Pennsylvania American Water in April 2021, citing that the proposed sale was important to improve the city’s infrastructure, provide for resilient and responsive municipal services, and support the city’s future. With the acquisition, Pennsylvania American Water also welcomed 23 of the system’s employees to its local team.
“This is a transformative moment for the City of York,” said York Mayor Michael Helfrich. “Today is the start of a new day for our city. With this sale now complete, we can clear all of York’s long-standing debts and build a nest egg for the city’s long-term fiscal health. For our residents and businesses who are proud to call York home, this sale brings stability and hope for our future.”
The $235.3 million purchase was approved on April 14, 2022 by the Pennsylvania Public Utility Commission (PUC). As part of the PUC’s approval, Pennsylvania American Water will adopt the existing City of York wastewater rates for three years and will continue billing customers on a monthly basis. The PUC regulates the company’s rates, rules and regulations of service; therefore, any future rate changes will require review and approval by the PUC. The rates for bulk agreements with neighboring municipalities will also remain in place for three years.
Pennsylvania American Water offers multiple customer programs including assistance through the company’s longstanding H2O Help to Others program. For qualifying wastewater customers, the company offers grants of up to $500 per year and a 30 percent discount on the total wastewater charges. The Pennsylvania Department of Human Services’ Low Income Household Water Assistance Program (LIHWAP) is an additional resource that can help customers.