Pennsylvania American Water acquires Butler Area Sewer Authority
(UI) – Pennsylvania American Water, a subsidiary of American Water, announced Tuesday that it completed the purchase of the Butler Area Sewer Authority (BASA) wastewater system for $230 million. The newly acquired wastewater system in Butler County serves more than 15,000 customer connections across 32.5 square miles, including the City of Butler; parts of East Butler Borough; and portions of Butler, Center, Connoquenessing, Summit and Oakland Townships.
Pennsylvania American Water plans to invest more than $75 million during the next five years to upgrade the BASA wastewater treatment and collection systems. These upgrades include replacing pump stations, improving electrical safety and treatment procedures, conducting systemwide assessments and inspections and cleaning and rehabilitating sewer collection mains and manholes.
In addition to the system investments above, Pennsylvania American Water will nearly double the shareholder contribution to its hardship grant program, increasing the fund by $3.5 million over five years. Also, Pennsylvania American Water’s commercial customers can now access a payment arrangement program previously limited to residential customers.
In October 2022, BASA agreed to sell its wastewater system to Pennsylvania American Water. The Authority deemed the sale essential to improving the system's infrastructure and removing its burden of meeting increasingly stringent environmental standards and regulations. Proceeds from the sale are expected to be used by BASA to eliminate the Authority's existing $49 million debt and liabilities.
The Pennsylvania Public Utility Commission (PUC) approved the purchase on Nov. 9, 2023, following a settlement with interested stakeholders. The PUC regulates, reviews and approves rates and rules and regulations, and any future changes to rates would have to be reviewed and approved by the Commission. Pennsylvania American Water will maintain current wastewater rates for at least one year. Customers will eventually transition from flat rate billing to usage-based billing, which is calculated on the water consumed as measured by the water meter.
With today’s acquisition, Pennsylvania American Water is the wastewater service provider for more than 113,000 customer connections across the Commonwealth.
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