In March, Pennsylvania American Water agreed to step in and purchase the Towamencin Municipal Authority’s wastewater system after a Florida-based company decided not to move forward on their agreement with the Township.  

Most people notice when their utility bills change; however, safely treating wastewater and returning clean water back to the environment isn’t something most people ever think about. That’s what we are here for. 

Conversations about improving America’s infrastructure often focus on roads and bridges. The main roads of Towamencin Township, for example, are the same today as when settlers first used horses and wagons to move goods back in the 18^th century. Thankfully the grass and dirt has been replaced by smooth asphalt.  

Modernizing our aging water infrastructure is just as vital. The average age of water and sewer pipes in the U.S. is nearly 50 years old. In Pennsylvania, it’s even worse. The average age of most sewer systems is approaching 75 years and many pipes over 100 years old. That means our water infrastructure requires updating like our roads.  

To us, safely treating what goes down the drain and improving aging infrastructure are critical. We think about it every day. As the Commonwealth’s largest water and wastewater provider, we continue to make investments to improve our services to 2.4 million Pennsylvanians who rely on us each day. 

For customers wanting to better understand their utility bills — including our potential future wastewater customers in Towamencin Township and those living in Montgomery County — I am eager to share more information on what to expect from your Pennsylvania American Water bill. 

First, it’s important to understand that our rates are set by the Pennsylvania Public Utility Commission (PUC). Pennsylvania American Water and other PUC-regulated utilities cannot make changes without approval.  

Based on approved rates, here is how each dollar of all of our water and wastewater customers’ monthly bills are allocated: 

1. Investing in system improvements. We invest 60 cents of every dollar into upgrading water and wastewater treatment facilities, pipelines, storage tanks and pumping stations to meet regulatory standards and provide reliable service. Our team of experts regularly monitors, maintains and upgrades our facilities to operate efficiently and meet regulatory standards.  

2. Covering operating costs. We allocate 30 cents of every dollar to pay for energy, fuel and chemicals needed to treat the water, as well as operations, maintenance and administrative costs required to run these facilities. We have an exceptional water quality track record – performing thousands of tests every day for about 100 regulated contaminants and consistently assessing water quality through online monitors.  

3. Paying taxes. Like all businesses, we pay federal, state, and local taxes — including income tax. This accounts for approximately 10 cents of every dollar. 

By dedicating the largest portion of customer bills into continually upgrading infrastructure, we can improve our facilities to keep them operating efficiently, meet regulatory standards and deliver high quality service. In fact, we invested $490 million in 2022 alone to improve our water and wastewater treatment and pipeline systems – proof of your water bill at work. 

For Towamencin Township residents wanting to learn more about our planned acquisition of the Towamencin Municipal Authority’s wastewater system, or what to expect on your wastewater bill, please join us at our next open house on April 27. Details are available here.

Learn more at Pennsylvania American Water.

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Justin Ladner is the president of Pennsylvania American Water, a subsidiary of American Water and the largest PUC-regulated water utility in the state, providing high-quality and reliable water and wastewater services to approximately 2.4 million people.