Pennsylvania American said no immediate changes to customers’ wastewater rates will be made. The company said any future increases will be reviewed by the Pennsylvania Public Utility Commission.
The sale of the sewer system will allow Sadsbury Township to eliminate its $2.5 million in debt. The deal requires approval from the Public Utility Commission and the Pennsylvania Department of Environmental Protection, and is expected to close by the end of the year.
Pennsylvania American acquired Coatesville water and wastewater systems in 2001. The latest acquisition will allow it to consolidate its operations in the area and sends the sewage to Coatesville for treatment.
“This acquisition will enable us to bring a more regional approach to wastewater solutions for western Chester County,” said Jeffrey McIntyre, president of Pennsylvania American Water.
He added that the company can also capitalize on increased efficiencies and greater scale. “While providing the technical expertise and financial resources to ensure Sadsbury’s system complies with all environmental regulations.”