Pennsylvania American Water purchasing Appalachian Utilities, Inc., Avis area water company
WOOLRICH, PA – Earlier this fall Mechanicsburg-based Pennsylvania American Water announced it will be acquiring Appalachian Utilities, Inc, a private water company serving Avis and Pine Creek and Dunnstable Townships.
The announcement said Appalachian will merge into Pennsylvania American Water, a subsidiary of American Water, the largest investor-owned water utility in the state and according to its website, a company “providing high-quality and reliable water and wastewater services to approximately 2.3 million people.”
Pennsylvania American Water earlier had acquired the Nittany and Boggs water systems in central Pennsylvania, part of a company program to purchase additional systems across the state.
The Record has been unable to learn of any dialogue between American and the City of Lock Haven or Suburban Water Authorities. Jack Peters, chairman of the Suburban Authority board, said there has been no talk with American and a city source said there has been no formal dialogue with American. The Lock Haven and Suburban systems, faced with a costly well water upgrade, have informally and preliminarily discussed a possible consolidation between the two Lock Haven – Mill Hall area entities.
Appalachian is a private, investor-owned system serving some 1,450 customers with its local field office on Park Avenue in Woolrich.
More information on the American Water – Appalachian acquisition was contained in the purchase announcement:
“Appalachian has served our customers proudly since 1995, and we are grateful for our partnership with the community over this time,” explained Frank Sargent, Jr., president of Appalachian. “We believe that this transaction with Pennsylvania American Water will ensure that our customers and employees are placed in the hands of another competent, community-minded utility partner going forward.”
As part of the agreement, Pennsylvania American Water plans to invest more than $6.5 million into the system to upgrade aging water infrastructure.
“We look forward to becoming the water service provider for these customers in Clinton County, and we appreciate that the leadership at Appalachian Utilities, Inc. is entrusting us with this privilege,” said Pennsylvania American Water President Justin Ladner. “The system upgrades we plan to make will benefit area customers, and the acquisition will further promote regionalization and consolidation of our central Pennsylvania systems.”
Pennsylvania American Water and Appalachian Utilities, Inc. will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and Pennsylvania Department of Environmental Protection. The transaction is expected to be completed in late 2024.
Pennsylvania American Water will adopt Appalachian’s current rates at closing. The PUC regulates the company’s rates, and any future rate changes would have to be reviewed and approved by the PUC. Pennsylvania American Water offers grants and discounted services to customers who qualify through its H2O Help to Others Program.
