Pennsylvania American Water, a utility company and a subsidiary of American Water, has recently announced the acquisition of the water assets of the Municipal Authority as well as wastewater assets, from the Borough of Turbotville located in Northumberland County.
Apparently, the buying price for both the systems combined was around $1 million. The water system delivers to almost 320 customers in Borough of Turbotville and a part of Lewis Township, whereas the wastewater system caters to nearly 290 Turbotville customers.
According President of Pennsylvania American Water, Jeffrey McIntyre, the transaction shows another vital step towards taking a more regional approach to wastewater and water service. The purchase increases the agency’s customer base, which enables it to capitalize on economies of scale and increase the operational efficiency for the benefit of all the customers.
The sale of the wastewater and water systems enables the Borough of Turbotville to pay off all the remaining debt.
The company is planning to bring Pennsylvania American Water’s wastewater and water expertise and investment funds to the people of Turbotville. The people will continue to get the sames services that the Borough has provided, however Pennsylvania American Water will be capable of performing any needed upgrades to the sewer and water facilities. Moreover, many people may actually observe their monthly bills reduced, Council President of Turbotville Borough, Francis Betz, said.
Seemingly, as approved by the Pennsylvania Public Utility Commission, the company has adopted current water rates of Turbotville, which will now be billed on a monthly basis. Customers of wastewater system will be billed according to the wastewater rates of the company, which are formally based on usage of water and billed after the reading of water meters every month, instead of flat bi-monthly rate of Turbotville.
Sources further mentioned that as a part of acquisition, Pennsylvania American Water is planning to build a new $3.2 million wastewater treatment plant with completion expected for 2022, replacing the current facility.
Source Credits: https://amwater.com/paaw/news-community/pa_news_feed/id/4223879