Le Lézard
Classified in: Environment
Subjects: Contract/Agreement, Product/Service, Merger/Acquisition

Pennsylvania American Water Signs Agreement to Acquire Borough of Kane Authority's Wastewater System


Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced that it has signed an agreement to acquire the wastewater assets of the Borough of Kane Authority in McKean County for approximately $17.5 million. The Authority's wastewater system serves nearly 2,100 customers in Kane Borough and Wetmore Township.

"We have been providing reliable water service to this area for more than 100 years and are deeply rooted in these communities," said Pennsylvania American Water President Mike Doran. "The proceeds of the sale will support local infrastructure improvements and economic development activities that will be vital to supporting a high quality of living for residents."

Pennsylvania American Water and the Authority will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and other necessary approvals from the Pennsylvania Department of Environmental Protection.

"We look forward to bringing our operational and engineering expertise, as well as our commitment to make necessary capital investments, to improve the wastewater system and ensure its compliance with environmental regulations," Doran added. "We also plan to welcome Kane's four wastewater treatment plant operators to the Pennsylvania American Water family."

The signing of the purchase agreement is the culmination of several years of negotiations between Pennsylvania American Water, the Authority, Kane Borough, and Wetmore Township officials. The company expects to close the transaction in the later part of 2020, pending regulatory approvals.

The pending transaction will be executed under Pennsylvania's Act 12 statute, which allows municipalities to sell water and wastewater systems for a price based on the fair market value of the facilities. Prior to the passage of Act 12, the valuation process was based on assessing the system's original cost at the time of construction ? which may be 50 years old or more ? less depreciation and contributed property.

"The law enacted in 2016 now provides municipalities the opportunity to receive a purchase price that is more reflective of the current value of the system assets," Doran explained.

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.4 million people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 7,100 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 14 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.


These press releases may also interest you

11 jui 2020
Deelat Industrial debuted its high-quality line of solar street lights consisting of 21 lights designed for various applications such as parks, campuses, parking lots, basketball courts, tennis courts, gardens, alleys and walkways. The solar street...

10 jui 2020
Growatt, one of the world's top 5 three-phase string inverter suppliers according to IHS Markit, introduces MAC series of its X generation inverters for three-phase solar PV market in Brazil. The new inverter series provide flexibility to meet the...

10 jui 2020
KB Home today announced the grand opening of Baseline Villas, a new community of paired homes ideally situated in a premier Broomfield master plan. Baseline is a new 1,100-acre master-planned community focused on three principles: environmental...

10 jui 2020
TransAlta Corporation ("TransAlta") will release its second quarter 2020 results before markets open on Friday, July 31, 2020. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other...

10 jui 2020
The "Technology Landscape, Trends and Opportunities in the Global Carbon Nanotube (CNT) Market" report has been added to ResearchAndMarkets.com's offering. The technologies in carbon nanotubes have undergone significant changes in recent years, from...

10 jui 2020
Forbes has named AMP Robotics Corp. ("AMP"), a pioneer and leader in artificial intelligence (AI) and robotics for the recycling industry, one of America's most promising AI companies. The publication's annual "AI 50" list distinguishes private,...



News published on 14 november 2019 at 16:50 and distributed by: