Essential’s Pennsylvania wastewater subsidiary purchases East Norriton system for US$21 million
- June 27, 2020
- Category: Contracts, Water issues, Engineering, Corporate, North America
Essential Utilities, one of the largest publicly traded water, wastewater and natural gas providers in the U.S. announced that its Pennsylvania subsidiary procured the approximately 5,000-connection wastewater assets of East Norriton Township in Montgomery County for US$21 million.
East Norriton was acquired under Pennsylvania’s Act 12, fair market valuation legislation, which encourages consolidation in a fragmented water and wastewater industry, allowing resources to be shared among a larger service area.
Chris Franklin CEO of Essential said:
“We’re pleased to add the East Norriton community to our growing wastewater footprint in Southeastern Pennsylvania.” He added: “We’re looking forward to putting our engineering and construction expertise to work to complete roughly $16 million in capital work over the next 10 years.”
Aqua Pennsylvania provides water and wastewater service to approximately 1.4 million people in 32 counties throughout the Commonwealth of Pennsylvania and recently received conditional acceptance (from the Pennsylvania Public Utility Commission) of its application to acquire the wastewater assets of the Delaware County Regional Water Quality Control Authority (DELCORA) for US$276.5 million.
Marc Lucca Aqua Pennsylvania Wastewater President said:
“We believe our planned infrastructure improvements will target sanitary sewer overflows and reduce extraneous flows by replacing, lining and repairing portions of the sewer collection system, and upgrading several pump stations. These capital projects will significantly improve operational efficiency and environmental conditions. “
This is the second acquisition for Essential’s water and wastewater division in 2020. In January, Aqua Ohio purchased the City of Campbell’s water treatment plant and distribution system for US$7.5 million, which serves about 3,200 connections in Mahoning County.