Acquisitions Will Add Approximately 1,100 Water Customers and 500 Wastewater Customers

MECHANICSBURG, Pa., November 21, 2024--(BUSINESS WIRE)--Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), completed its acquisition of the Farmington Township water and wastewater system in Clarion County. Additionally, the company has signed an agreement to purchase the water system assets of Corner Water Supply and Service Corporation, another Clarion County drinking water provider. Combined, these systems will be acquired for approximately $5.8 million and serve around 1,100 water and 500 wastewater customers.

"Regionalizing water and wastewater systems is crucial for rural counties like Clarion," said Pennsylvania American President Justin Ladner. "By consolidating resources and expertise, we can help ensure reliable and efficient services, reduce costs, and improve water quality and wastewater service for the residents of these communities."

Farmington had previously purchased water from Pennsylvania American Water. With this acquisition, it can pay off its debt and allocate the funds to other essential township capital improvement projects.

"Farmington Township is very pleased to have Pennsylvania American Water take over our wastewater and water systems operations," said Farmington Township Supervisor Robin Kahle. "It can be overwhelming for a township like Farmington to meet regulatory requirements continually."

Pennsylvania American Water plans to invest more than $3 million in system improvements during the next five years to meet regulatory, safety, and security standards.

Once completed, the Corner Water Supply and Service Corporation purchase will bring Pennsylvania American Water’s Clarion County customer totals to approximately 5,200 and 3,900 connections, respectively, for water and wastewater service.

"Corner Water Supply, owned and operated by the families of William G. Patterson and Woody Weaver since 1960, will be sold to Pennsylvania American Water," said Tom Weaver, principal owner of Corner Water Supply and Service Corporation. "We decided to sell after considering the investments necessary to address aging infrastructure and the challenging regulatory environment. Pennsylvania American Water will continue to provide customers with a clean, safe and abundant water supply. We can't think of a better company to continue servicing our customers."

Pending Pennsylvania Public Utility Commission (PUC) approval of the acquisition, Pennsylvania American Water will adopt Corner Water’s PUC-approved rates at closing. The PUC regulates the company's rates and reviews and approves any future rate changes. Pennsylvania American Water offers grants and discounted services to customers who qualify through its H2O Help to Others Program.