Aqua America’s Pennsylvania subsidiary has completed the purchase of the Cheltenham Township wastewater system, which serves approximately 10,200 connections in Montgomery County, for $50.25 million.
“This is an exciting time in the water industry, and we are pleased to offer a compelling set of solutions for municipal leaders who are considering the sale of their utilities,” Aqua America Chairman and CEO Christopher Franklin. “We have forged a strong partnership with leaders in Cheltenham to bring significant investment to improve sewer pipes and provide high quality service to residents in the township.”
“We are proud that the Board of Commissioners of Cheltenham Township, where we’ve provided drinking water for decades, chose to have us provide their wastewater service as well and entrusted us to be stewards of those assets,” said Aqua Pennsylvania President Marc Lucca.
“Cheltenham Township is pleased to close on the sale of the sewer system to Aqua because it’s truly a win-win for all parties,” said Cheltenham Township Manager Bryan Havir. “The multi-year collection system re-lining and replacement work needed for the 90-year-old sewer system would have cost $10 million per neighborhood at a total cost of $50 million, which the township couldn’t cover without assuming loans and significant tax increases. This sale allows Aqua and the Pennsylvania Department of Environmental Protection to address needed collection system and lateral repairs without the township having to saddle residents with increased taxes and costly repairs.”
Currently, Aqua Pennsylvania has two transactions under review by the Pennsylvania Public Utility Commission and recently announced an asset purchase agreement with DELCORA, which if approved would be the largest municipal transaction for Aqua America and the largest water/wastewater municipal transaction in Pennsylvania’s history, yielding Aqua Pennsylvania the equivalent of 165,000 wastewater customers.
In total, Aqua America subsidiaries completed eight acquisitions in 2019, adding a total of 1,495 new water customer connections and 11,130 new wastewater customer connections.
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