Press Release

PUC Approves Acquisitions of Exeter Township, Steelton Borough Systems by Pennsylvania American Water Company

Published on 10/3/2019

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved two acquisition applications of Pennsylvania American Water Company (PAWC) for PAWC’s purchase of the Exeter Township wastewater system in Berks County, and its purchase of the Steelton Borough Authority (Steelton) water system in Dauphin County.

The Commission voted 4-0 to approve a Joint Petition for Partial Settlement for the transfer of Exeter Township’s wastewater system assets to PAWC, as recommended by Administrative Law Judge Andrew Calvelli; as well as a Joint Petition for Settlement for the transfer of Steelton’s water system assets to PAWC, as recommended by PUC Administrative Law Judges Steven Haas and Benjamin Myers.

On Sept. 25, 2018, PAWC filed an application with the Commission, later amended on Dec. 5, 2018, seeking approval of its acquisition of the Exeter Township wastewater system.  Parties to the case - including PAWC, Exeter Township, the PUC’s independent Bureau of Investigation and Enforcement (I&E), and the Pennsylvania Office of Consumer Advocate (OCA) – later reached a partial settlement, which provides for a purchase price of $93,500,000. 

The wastewater system currently provides service to 9,015 customers in Exeter Township, St. Lawrence Borough and small portions of Alsace Township and Lower Alsace Township in Berks County.

Additionally, on Jan. 2, 2019, PAWC filed an application with the Commission, later amended on Feb. 19, 2019, requesting that the PUC approve the transfer of Steelton’s water system to PAWC, by sale, with a purchase price of $21,750,000.  A joint settlement agreement was reached among PAWC, Steelton, I&E, OCA and the Pennsylvania Office of Small Business Advocate.  Steelton furnishes water service to nearly 2,500 customers, including approximately 2,300 residential customers.

In approving the sale of Steelton and Exeter Township systems, the Commission has now granted eight acquisition applications (with one application remanded by the courts to the PUC) under Section 1329 of the Public Utility Code.  Signed into law as Act 12 of 2016, Section 1329 addresses the sale of water and wastewater systems owned by municipal corporations or authorities by providing a process for the sale of public water and wastewater assets at fair market value.

On Feb. 28, 2019, the Commission adopted a Final Supplemental Implementation Order providing for enhanced procedures and guidelines for how acquiring public utilities or entities are to prepare and submit applications to acquire and value municipal and authority-owned water and wastewater systems under Section 1329. 

PAWC, a subsidiary of American Water Works Company, Inc., provides water and wastewater service to approximately 660,000 customers and 65,000 customers, respectively, in 400 communities across 36 Pennsylvania counties.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket Nos:  A-2018-3004933
                        A-2019-3006880

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov