BRYN MAWR, Pa. – Aqua Pennsylvania, a subsidiary of Essential Utilities Inc., has finalized its $18 million purchase of the Greenville Sanitary Authority’s wastewater system in Mercer County.
The Pennsylvania Public Utility Commission approved the sale of the wastewater system, which serves the borough of Greenville and Hempfield and West Salem townships, on Dec. 12, 2024.
This is the first transaction approved by the Pennsylvania PUC since implementing improvements over the summer to the fair market value statute passed in 2016, a news release states.
“We are well-positioned and deeply committed to make the necessary investments to ensure safe and reliable service to our customers in Mercer County,” said Christopher Franklin, Essential Utilities chairman and CEO. “We’re happy to welcome these new customers to the Essential family.”
As part of the transaction, Aqua Pennsylvania plans to invest $20 million over the next decade in system improvements to resolve safety, operational and environmental deficiencies, including storage, labeling and dechlorination issues; wastewater treatment plant ventilation concerns; insufficient emergency/standby power generation; and permit compliance issues.
The cost of these planned improvements is less than half of what the Greenville Sanitary Authority planned to spend to address a Consent Order Agreement with the Pennsylvania Department of Environmental Protection, saving customers more than $20 million, the release states.
“Our expertise affords us the knowledge to provide necessary improvements at a fraction of the cost that would otherwise have been borne by the authority and its customers,” said Marc Lucca, Aqua Pennsylvania president. “The repairs and upgrades we will make to Greenville’s wastewater system are cost effective and will improve reliability and performance.”
Customers’ base rates will not change after Aqua begins operating the system, the release states. Any future rate change will be subject to approval of the PUC. Eligible customers seeking assistance with their sewer bills will gain access to Aqua’s low-income Customer Assistance Program and the hardship fund Aqua Aid.
This is the fourth water and wastewater acquisition Essential Utilities has completed in the past 12 months, adding 2,600 customers, or 4,520 equivalent dwelling units.