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Pennsylvania American Water to Acquire Local Water Authorities

Modern water treatment facility serving local communities in Pennsylvania.

News Summary

Pennsylvania American Water has announced its plans to acquire the Indian Creek Valley Water Authority and the Sutersville-Sewickley Municipal Sewage Authority for a total of $36.05 million. The acquisition aims to enhance service delivery and efficiency for approximately 2.4 million residents already served by the company. Following the acquisitions, significant investments will be made to improve water quality and infrastructure, ensuring the sustainability of regional services. These changes are pending approval from the Pennsylvania Public Utility Commission, with expected completion by Q3 2026.

Pennsylvania – Pennsylvania American Water has announced the agreements to acquire two local water authorities for a combined total of $36.05 million. The acquisitions include the Indian Creek Valley Water Authority, which is situated in Fayette County, and the Sutersville-Sewickley Municipal Sewage Authority, located in Westmoreland County. This strategic move aims to enhance the service delivery and efficiency of Pennsylvania American Water, which already supplies water and wastewater services to approximately 2.4 million residents across the state.

The acquisition of the Indian Creek Valley Water Authority, valued at $32.8 million, is intended to add about 2,700 customer water connections. The Indian Creek Valley system encompasses a network of approximately 2,700 metered connections, supported by two springs, one well, and a surface water treatment facility that collectively has almost 1 million gallons per day capacity. Additionally, the system features 140 miles of distribution mains, five booster pumping stations, and 11 finished water storage tanks. Following the acquisition, Pennsylvania American Water plans to invest $8.9 million into system improvements to enhance water delivery and quality.

The Sutersville-Sewickley Municipal Sewage Authority is being acquired for an estimated $3.25 million, aiming to integrate about 500 wastewater connections into Pennsylvania American Water’s operations. The sewage system comprises approximately 12 miles of collection mains and three pumping stations. Following the acquisition, an estimated $800,000 will be allocated for updates and improvements to the existing infrastructure.

The acquisitions are predicated on a philosophy of regionalization, which aims to pool resources to provide more effective service delivery, according to company executives. This process is critical for ensuring the sustainability and reliability of water and wastewater systems, particularly amid concerns about financing and long-term service capability expressed by existing authority leaders.

Both acquisitions are pending approval from the Pennsylvania Public Utility Commission (PUC), which oversees utility rates and future modifications. The utilities expect to finalize the transactions by the third quarter of 2026.

Justin Ladner, the president of Pennsylvania American Water, noted the anticipated benefits that regionalization would bring to communities involved, ensuring they receive robust and consistent services. Concerns regarding the long-term viability of local water services have also been raised, particularly by Dave Cramer, the chairman of the Indian Creek Valley Water Authority, who highlighted the necessity for improved financial capital and local expertise that Pennsylvania American Water can provide.

Bruce Riley, president of the Sutersville-Sewickley board, remarked on the challenges faced by the authority, including outdated infrastructure and previous financial constraints that have made this partnership with Pennsylvania American Water advisable.

Moreover, Pennsylvania American Water offers programs designed to assist economically vulnerable customers, such as the H2O Help to Others Program™, which provides income-based financial aid to those in need. This aligns with the company’s commitment to ensuring access to reliable and affordable water services to all residents within its service area.

American Water, the parent company of Pennsylvania American Water, boasts the distinction of being the largest regulated water and wastewater utility firm in the United States, with a history extending back to 1886. Its vast experience in managing water services underlines the significance of these acquisitions for both the company and the communities it serves.