Pennsylvania American Water and Towamencin to cancel wastewater system sale
(UI) — Pennsylvania American Water (PAW) and Towamencin Township have announced plans to terminate the sale of the township’s wastewater system.
The decision, pending formal approval at Towamencin’s next Board of Supervisors meeting, comes after changes in state regulations reshaped the terms of the deal.
The original agreement, signed in June 2022, involved selling the wastewater system to NextEra Water Pennsylvania, LLC. However, in March 2023, NextEra exited the transaction, and PAW stepped in to acquire the system under the same terms. PAW officially took over the agreement on March 24, 2023.
In July 2024, the Pennsylvania Public Utility Commission (PUC) introduced new criteria for evaluating the sale of public water and wastewater systems. The existing agreement between PAW and Towamencin does not align with these new guidelines, leading both parties to mutually agree to terminate the deal.
“We appreciate the Board of Supervisors’ trust in addressing their environmental challenges and investment needs,” said PAW President Justin Ladner. “However, we both acknowledge that the current deal structure is unlikely to meet the PUC’s new criteria.”
Despite this cancellation, PAW is moving forward with plans to acquire the wastewater system in Elizabeth Borough, Allegheny County. The company expects to seek PUC approval for that deal in the coming months.
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