Pennsylvania American Water announced Tuesday that it has completed the acquisition of the Elizabeth Borough Municipal Authority wastewater system for $28 million.
The newly acquired system serves approximately 660 direct customer connections in Elizabeth Borough and about 1,500 indirect customers in Lincoln Borough Elizabeth Township and Forward Township.
Over the next five years, Pennsylvania American Water plans to invest more than $25 million in improvements to the Elizabeth Borough wastewater system to meet regulatory, safety and security standards.
“We look forward to continue providing this community with safe, clean, reliable and affordable service by delivering on our technical expertise and decades of water and wastewater experience,” Pennsylvania American Water President Justin Ladner said.
The acquisition was approved by the Pennsylvania Public Utility Commission on Oct. 9. As part of the transition, Pennsylvania American Water will adopt the rates currently charged to customers of the system, ensuring a smooth service continuation, as future rate changes will be subject to commission review.
“Throughout this competitive bid process, Pennsylvania American Water has reaffirmed its long-standing reputation as an excellent community partner who is dedicated to providing high-level service,” Elizabeth Borough Mayor Barry Boucher said.
He also emphasized that the sale will “relieve the need to continually invest in an aging system,” allowing the town to focus on other critical needs.
The decision to sell the wastewater system came after EBMA faced significant investment needs for its infrastructure and regulatory compliance. The proceeds from the sale are expected to fund other community improvement projects in the township.
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