Penn. American Buys Butler Water System

Oct. 24, 2003

Pennsylvania American Water Co. is buying a Butler County water authority for $1.2 million, the company said today.

Based in Hershey, Pa., Pennsylvania American has a significant Pittsburgh-area presence. The company said in a statement it was completing its previous acquisition of the Connoquenessing Borough Authority water system.

The water system serves more than 1,500 customers in Connoquenessing Borough and Connoquenessing Township and has to this point bought all of its water from Pennsylvania American, the company said.

"The change for customers will be seamless," said Robert Ross, Pennsylvania American's president and chief executive officer.

Cindy Beers, Connoquenessing Borough Council president, said, "It was the consensus of council that this is the best decision for the borough residents and the community."

Pennsylvania American said the water system would compliment its growing presence in Butler County, where the population has increased by double digits over the last decade.

The company said it was completing a $6 million project to interconnect its Butler and Ellwood City water systems. The early phases of the project began the county's western end in Jackson Township, and it has been moving east since then.

Pennsylvania American has acquired four other water systems in Butler County over the last 10 years, including Summit Township, Center Township, Butler Township and TOW Associates Industrial Park.

Pennsylvania American serves more than 2 million customers in Pennsylvania and operates 38 water treatment facilities, three wastewater plants and more than 8,000 miles of pipelines to 357 communities in 35 counties.

The company serves about 550,000 customers in Allegheny County, including portions of the city of Pittsburgh and the South Hills.

Source: Pittsburgh Business Times