Aqua Pennsylvania to purchase Greenville wastewater system for $18M

Essential Utilities Inc. announced that its Aqua Pennsylvania subsidiary has agreed to acquire the wastewater system in Greenville, Pennsylvania for $18 million.

The wastewater collection network and treatment plant, located in Mercer County, is currently operated by the Greenville Sanitation Authority. It has over 2,300 customer connections and serves over 1,700 additional customers in West Salem and Hempfield Townships.

“The reality is that our [wastewater] plant needed a $35 to $40 million rebuild, and that was beyond our means,” said Greenville Sanitary Authority Board Chair Jonathan Bailey. “Also, our strong attention to day-to-day operations doesn't create enough improvement to satisfy the consent order we have with the Pennsylvania Department of Environmental Protection. We needed an expert with the resources and expertise to fix the issues and prevent them from ever coming back. We considered a number of options — we are confident Aqua is this expert. We are now able to avoid a costly rebuild. This is an ideal solution to a very serious situation."

The transaction builds on Essential’s regional expansion strategy. The wastewater system sale is expected to close in the first quarter of 2024.

Essential plans to invest $20 million in 10 years to bring the wastewater treatment plant into compliance with state and Federal regulations, avoiding the complete system rebuild originally estimated at $35 to 40 million. The company will also replace collection system pipes to improve reliability, increase plant capacity, and improve performance.

Essential says that all existing employees at the Greenville facility will be offered jobs with the company when the acquisition closes, pending the company’s standard hiring practices.

"We have a strong track record of using our operational expertise, scale and technical resources to support municipalities like Greenville," said Essential Chairman and CEO Chris Franklin. "We are deeply committed to our customers in Mercer County, and we are well-positioned to make necessary investments to ensure safe and reliable service for local residents."

The Greenville wastewater system is the first purchase agreement to be signed by Aqua Pennsylvania this year.