Pennsylvania American Water to purchase Farmington Township water, wastewater systems

The American Water subsidiary agreed to purchase the township’s water and wastewater systems for $5.545 million, with plans to invest over $3 million for system improvements.
June 16, 2023
2 min read

Pennsylvania American Water announced that it has signed an agreement with Farming Township to purchase the township’s water and wastewater systems for $5.545 million.

The systems serve 1,017 customers in the area. Farmington Township explored the potential sale of its water and wastewater systems for the last year and a half, citing that proceeds from the sale would be used to pay off debt and fund other township capital improvement projects.

“Pennsylvania American Water has been serving Farmington Township as a bulk water customer for decades, and we look forward to operating the water distribution system and becoming the wastewater provider for this community,” said Pennsylvania American Water President Justin Ladner. “Farmington residents will join the more than 2.3 million people across the Commonwealth that already rely on Pennsylvania American Water to expertly operate, manage and invest in their water and wastewater services.”

Upon ownership, Pennsylvania American Water plans to invest over $3 million for system improvements to meet regulatory, safety and security standards.

“Throughout this process, Pennsylvania American Water has reaffirmed its long-standing reputation as an excellent community partner who is dedicated to providing high-level service,” said Matt Sherbine, Township Supervisor. “The sale of our water and wastewater systems will unburden the Township of having to continually address regulatory issues and allow the experts at Pennsylvania American to make needed investments in an aging system, while enabling our community to focus on more important needs of our citizens.”

As part of the agreement, the American Water subsidiary will adopt the township’s current water and wastewater rates. The company’s rates are regulated by the Pennsylvania Public Utility Commission (PUC), and any future rate changes would have to be reviewed and approved by the PUC.

Pennsylvania American Water and Farmington Township will seek approval of the acquisition from the PUC and the Pennsylvania Department of Environmental Protection, expecting to complete the transaction in 2024.

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