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Essential Utilities Inc. (NYSE: WTRG) has completed the $18 million acquisition of Greenville Sanitary Authority’s wastewater system in Mercer County, PA, through its subsidiary Aqua Pennsylvania. The system serves Greenville Borough, Hempfield and West Salem Townships.
The company plans to invest $20 million over the next decade in system improvements to address safety, operational, and environmental issues. These improvements will cost less than half of what the Greenville Sanitary Authority had planned to spend on addressing a Consent Order Agreement with the Pennsylvania Department of Environmental Protection, resulting in $20 million in customer savings.
This marks Essential Utilities’ fourth water and wastewater acquisition in the past 12 months, adding 2,600 customers or 4,520 equivalent dwelling units. Customer base rates will remain unchanged initially, and eligible customers will gain access to Aqua’s assistance programs.
Essential Utilities Inc. (NYSE: WTRG) ha completato l’acquisizione del sistema fognario della Greenville Sanitary Authority per un valore di 18 milioni di dollari nella contea di Mercer, PA, attraverso la sua controllata Aqua Pennsylvania. Il sistema serve il comune di Greenville, il township di Hempfield e il township di West Salem.
L’azienda intende investire 20 milioni di dollari nei prossimi dieci anni per migliorare il sistema, affrontando questioni di sicurezza, operatività e ambientali. Questi miglioramenti costeranno meno della metà di quanto aveva pianificato di spendere la Greenville Sanitary Authority per conformarsi a un Accordo di Ordine di Consenso con il Dipartimento di Protezione Ambientale della Pennsylvania, generando 20 milioni di dollari di risparmi per i clienti.
Questo rappresenta la quarta acquisizione di acqua e acque reflue da parte di Essential Utilities negli ultimi 12 mesi, aggiungendo 2.600 clienti o 4.520 unità abitative equivalenti. Le tariffe per i clienti rimarranno inizialmente invariate e i clienti idonei avranno accesso ai programmi di assistenza di Aqua.
Essential Utilities Inc. (NYSE: WTRG) ha completado la adquisición del sistema de aguas residuales de Greenville Sanitary Authority por un valor de 18 millones de dólares en el condado de Mercer, PA, a través de su subsidiaria Aqua Pennsylvania. El sistema da servicio a Greenville Borough, Hempfield y West Salem Townships.
La compañía planea invertir 20 millones de dólares en la próxima década en mejoras del sistema para abordar problemas de seguridad, operativos y ambientales. Estas mejoras costarán menos de la mitad de lo que la Greenville Sanitary Authority había planeado gastar para abordar un Acuerdo de Orden de Consentimiento con el Departamento de Protección Ambiental de Pennsylvania, resultando en 20 millones de dólares en ahorros para los clientes.
Esto marca la cuarta adquisición de agua y aguas residuales de Essential Utilities en los últimos 12 meses, sumando 2,600 clientes o 4,520 unidades de vivienda equivalentes. Las tarifas de la base de clientes permanecerán sin cambios inicialmente, y los clientes elegibles tendrán acceso a los programas de asistencia de Aqua.
Essential Utilities Inc. (NYSE: WTRG)는 PA 주 머서 카운티의 Greenville Sanitary Authority의 폐수 시스템을 1,800만 달러에 인수했으며, 이는 자회사인 Aqua Pennsylvania를 통해 이루어졌습니다. 이 시스템은 Greenville Borough, Hempfield 및 West Salem Township에 서비스를 제공합니다.
회사는 향후 10년간 2천만 달러를 투자할 계획이며, 시스템 개선을 통해 안전, 운영 및 환경 문제를 해결할 예정입니다. 이러한 개선 사항은 Greenville Sanitary Authority가 Pennsylvania 환경 보호부와의 동의 명령 협정을 해결하기 위해 계획했던 비용의 절반도 안 되는 비용으로 발생하며, 결과적으로 고객에게 2천만 달러의 절감 효과를 안겨줄 것입니다.
이번 인수는 지난 12개월 동안 Essential Utilities의 네 번째 수돗물 및 폐수 인수로, 2,600명의 고객 또는 4,520개의 동등 주거 단위를 추가하게 됩니다. 고객 요금은 초기에는 변경되지 않으며, 자격을 갖춘 고객은 Aqua의 지원 프로그램에 접근할 수 있습니다.
Essential Utilities Inc. (NYSE: WTRG) a finalisé l’acquisition du système d’eaux usées de la Greenville Sanitary Authority pour 18 millions de dollars dans le comté de Mercer, PA, par l’intermédiaire de sa filiale Aqua Pennsylvania. Le système dessert la commune de Greenville, Hempfield et le township de West Salem.
L’entreprise prévoit d’investir 20 millions de dollars au cours de la prochaine décennie pour améliorer le système afin de faire face à des problèmes de sécurité, d’exploitation et environnementaux. Ces améliorations coûteront moins de la moitié de ce que la Greenville Sanitary Authority avait prévu de dépenser pour se conformer à un Accord de Consentement avec le Département de Protection de l’Environnement de Pennsylvanie, entraînant 20 millions de dollars d’économies pour les clients.
Ceci marque la quatrième acquisition d’eau et d’eaux usées d’Essential Utilities au cours des 12 derniers mois, ajoutant 2 600 clients ou 4 520 unités d’habitation équivalentes. Les tarifs de base pour les clients resteront inchangés au départ, et les clients éligibles auront accès aux programmes d’assistance d’Aqua.
Essential Utilities Inc. (NYSE: WTRG) hat die Übernahme des Abwassersystems der Greenville Sanitary Authority in der Mercer County, PA, für 18 Millionen Dollar durch ihre Tochtergesellschaft Aqua Pennsylvania abgeschlossen. Das System dient der Gemeinde Greenville, Hempfield und West Salem Township.
Das Unternehmen plant, in den nächsten zehn Jahren 20 Millionen Dollar zu investieren, um Systemverbesserungen vorzunehmen, die Sicherheits-, Betriebs- und Umweltprobleme adressieren. Diese Verbesserungen werden weniger als die Hälfte dessen kosten, was die Greenville Sanitary Authority für die Umsetzung einer Zustimmungsvereinbarung mit dem Pennsylvania Department of Environmental Protection geplant hatte, was zu 20 Millionen Dollar Ersparnissen für die Kunden führt.
Dies markiert die vierte Wasser- und Abwasserakquisition von Essential Utilities in den letzten 12 Monaten und fügt 2.600 Kunden oder 4.520 gleichwertige Wohneinheiten hinzu. Die Kundentarife bleiben anfänglich unverändert, und berechtigte Kunden erhalten Zugang zu den Unterstützungsprogrammen von Aqua.
Positive
- Acquisition adds 2,600 new customers to the company’s portfolio
- Planned improvements will save customers over $20 million compared to original authority plans
- First transaction approved under improved fair market value statute, potentially leading to more acquisitions
- No immediate rate changes for customers
Negative
- Required $20 million investment over 10 years to address system deficiencies
- Multiple operational issues need addressing including safety and environmental compliance
Insights
This $18 million acquisition of Greenville Sanitary Authority represents a significant strategic win for Essential Utilities, particularly in the context of Pennsylvania’s improved fair market value regulations. The transaction’s structure reveals sophisticated financial engineering that benefits both shareholders and ratepayers. Key financial highlights:
- The planned $20 million investment over 10 years demonstrates disciplined capital allocation, with the company’s expertise enabling 50% cost savings compared to the authority’s original plans
- The acquisition adds approximately 4,520 equivalent dwelling units (EDUs), expanding the company’s rate base and creating opportunities for operational synergies
- The transaction strengthens WTRG’s regulatory relationships by addressing compliance issues while maintaining stable rates
The improved fair market value statute implementation could accelerate WTRG’s consolidation strategy in Pennsylvania, potentially creating a pipeline of similar opportunities. The company’s demonstrated ability to achieve significant cost efficiencies ($20 million savings) while addressing environmental compliance issues positions it favorably for future acquisitions. The transaction’s structure, maintaining current base rates while providing access to customer assistance programs, reflects a balanced approach to stakeholder interests that should support regulatory approval of future deals.
The acquisition’s environmental and compliance aspects reveal strategic foresight in addressing critical infrastructure challenges. Key environmental considerations:
- The resolution of multiple safety and environmental deficiencies, including critical dechlorination and ventilation issues, significantly reduces operational risks and potential regulatory penalties
- The company’s approach to resolving the Consent Order Agreement demonstrates superior technical expertise and efficient resource allocation
- The planned improvements will enhance system reliability while ensuring environmental protection, particularly through improved emergency power generation and chemical management
Essential Utilities’ ability to implement these improvements at substantially lower costs while maintaining compliance standards showcases their operational excellence. The comprehensive approach to addressing environmental deficiencies, combined with cost-effective solutions, positions the company as a capable steward of public infrastructure while maintaining environmental responsibility.
Acquisition reflects company’s commitment to providing reliable wastewater treatment and environmental protection
BRYN MAWR, Pa.–(BUSINESS WIRE)– Essential Utilities, Inc. (NYSE: WTRG) announced today its Aqua Pennsylvania subsidiary has finalized its $18 million purchase of the Greenville Sanitary Authority’s wastewater system in Mercer County, PA. The system serves Greenville Borough, Hempfield and West Salem Townships. The Pennsylvania Public Utility Commission (PUC) approved the sale on December 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. Essential Utilities, Inc. expects the improvements made by the Commission to reenergize the municipal acquisition market in Pennsylvania in 2025.
“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 Essential Utilities Chairman & CEO Christopher Franklin. “We’re happy to welcome these new customers to the Essential family.”
As part of the transaction, Aqua Pennsylvania plans to invest $20 million dollars 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
- 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.
“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 Aqua Pennsylvania President Marc Lucca. “The repairs and upgrades we will make to Greenville’s wastewater system are cost effective and will improve reliability and performance,” said Lucca.
Customers’ base rates will not change after Aqua begins operating the system. 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 (CAP) and the hardship fund Aqua Aid.
As part of the transition, residents can expect to receive communication from Aqua Pennsylvania outlining service schedules and procedures.
This is the fourth water and wastewater acquisition Essential Utilities, Inc. has completed in the past 12 months, adding 2,600 customers or 4,520 equivalent dwelling units (EDUs).
About Aqua Pennsylvania
Aqua Pennsylvania provides water and wastewater service to approximately 1.5 million people in 32 counties throughout the Commonwealth of Pennsylvania. Visit AquaWater.com for more information or follow @MyAquaWater on Facebook and @MyAquaWater on X.
About Essential
Essential Utilities, Inc. (NYSE:WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting more than 7,600 acres of forests and other habitats throughout our footprint. Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across nine states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates,” “will” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, statements relating to the capital to be invested by the company over the next ten years, efficiencies created, and expansion of capacity in the system. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including the factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which is filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with the company’s business, please refer to the company’s annual, quarterly and other SEC filings. The company is not under any obligation – and expressly disclaims any such obligation – to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
WTRGF
View source version on businesswire.com: https://www.businesswire.com/news/home/20250131392076/en/
Media:
Amanda Burge
Regional Communications Specialist
M: 610.329.2015
O: 610.520.6440
Source: Aqua Pennsylvania
FAQ
How much did WTRG pay for the Greenville Sanitary Authority acquisition?
Essential Utilities (WTRG) paid $18 million to acquire the Greenville Sanitary Authority’s wastewater system.
What improvements will WTRG make to the Greenville wastewater system?
WTRG plans to invest $20 million over 10 years to address storage, labeling, dechlorination issues, ventilation concerns, insufficient emergency power generation, and permit compliance issues.
Will WTRG increase rates for Greenville wastewater customers?
Base rates will not change initially after Aqua begins operating the system. Any future rate changes will require Pennsylvania Public Utility Commission approval.
How many customers did WTRG gain from the Greenville acquisition?
The acquisition added 2,600 customers or 4,520 equivalent dwelling units (EDUs) to WTRG’s customer base.
How much will customers save under WTRG’s improvement plan versus the original authority plan?
Customers will save more than $20 million under WTRG’s improvement plan compared to what the Greenville Sanitary Authority had planned to spend.
