Pennsylvania American Water Signs Agreement to Purchase Sadsbury Township Municipal Authority Sanitary Sewer Collection System

Pennsylvania American Water

SADSBURY TWP, PAPennsylvania American Water, a subsidiary of American Water, announced that it recently signed an agreement to purchase the sanitary sewer collection system assets of the Sadsbury Township Municipal Authority (STMA) for $990,000. The system serves approximately 250 properties in Sadsbury Township, Lancaster County, with sanitary sewer treatment service provided by adjacent Christiana Borough and Salisbury Township through contractual arrangements.

“As the drinking water service provider to several southeastern Lancaster County communities, we are well positioned to serve Sadsbury Township through experienced, professional employees who can leverage the resources of our other local operations,” said Pennsylvania American Water President Justin Ladner. “This acquisition is a natural fit, and we are glad to welcome Sadsbury Township to the Pennsylvania American Water family.”

The agreement was approved by the Sadsbury Township Board of Commissioners on Nov. 1, 2022. STMA has faced challenges with costs, debt, management, and billing and has had limited ability to support the needed expansion of its system. Sadsbury Township, as the sole owner of STMA, will receive the proceeds from this proposed sale, which will allow the township to reduce debt. After the change in ownership, Pennsylvania American Water expects to continue to contract with Sadsbury Township’s current sanitary sewer treatment providers. Within the first five years of ownership, the company plans to invest approximately $1.3 million in system improvements to upgrade sewer collection lines and pump stations.

Pennsylvania American Water will seek approval from the Pennsylvania Public Utility Commission for the acquisition and other necessary approvals from the Pennsylvania Department of Environmental Protection. The company expects to close the transaction in 2023, pending regulatory approvals.

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