The transfer of the township system’s assets was approved for $93.5 million by the Pennsylvania Public Utility Commission (PUC).
Pennsylvania American Water, a utility company in Pennsylvania, has recently acquired the Exeter Township’s wastewater assets in Berks County. The transfer of the township system’s assets was approved for $93.5 million by the Pennsylvania Public Utility Commission (PUC), thus indicating Pennsylvania American Water’s fifth acquisition in this year.
On this occasion, Mike Doran, President of Pennsylvania American Water, said, “We are glad to have this opportunity to provide our new customers with quality wastewater service and meet their expectations.” Doran also showed a strong commitment to excellent customer service and improved environmental compliance and dependability.
Adoption of Exeter’s present sewer rates
As per the sources, Pennsylvania American Water has adopted Exeter’s existing sewer rates after the approval of the Pennsylvania Public Utility Commission (PUC). The sewer rates will now be billed on a month to month basis. The company’s rates and rules of service are managed by the PUC and are announced on the company’s website.
John Granger, Township Manager, commented, “The purchase of the wastewater treatment plant and collection system to Pennsylvania American Water is a huge profit to present and future residents of Exeter.” “Due to federal as well as state regulations, the plant and system were turning into a huge burden on the township, making it challenging for the township to manage,” Granger added.
Opportunity for the municipalities to receive a purchase price
This purchase was completed under Pennsylvania’s Act 12 statute, which enables municipalities to sell water and wastewater systems for a price on the basis of current value of its system assets. Before the passage of Act 12, valuation process was on the basis of evaluating the system’s original cost in the course of construction.
“The sale offers an exclusive opportunity to secure the finances of the township for the present and future inhabitants of this place,” said Granger. “We aim at utilizing the profits we get from the purchase to do away with all wastewater debt, execute new tax exemptions, and make deposits into pension funds, thereby offering tax savings for all eligible inhabitants,” added Granger. According to the sources, Pennsylvania American Water is planning to invest $3 million in water and wastewater infrastructure developments in Exeter Township over the years to come.