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Pennsylvania American Water Closes Three New Acquisitions To Expand Water, Wastewater Footprint

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has closed three acquisitions and purchased the assets of water and wastewater systems serving a combined total of approximately 2,100 people. The total transaction amount of the newly acquired systems is approximately $6.9 million.

In Pike County, Pennsylvania American Water acquired the Clean Treatment Sewage Company in Delaware Township that serves approximately 1,000 residents in the Marcel Lakes Estates development. The transaction’s closing is the culmination of a May 2012 ruling by the Pennsylvania Public Utility Commission (PUC) that ordered Pennsylvania American Water to acquire the troubled wastewater operation. Since February 2005, the Clean Treatment system has been subject to a moratorium preventing additional connections due to inflow and infiltration issues and overflows in the collection system.

In its ruling, the PUC required Pennsylvania American Water to submit a plan for system improvements to the PUC and Pennsylvania Department of Environmental Protection. The company’s plan will upgrade the sewer system’s treatment and collection facilities over the next four years. Pennsylvania American Water already supplies drinking water service to residents of Marcel Lakes Estates.

“The Clean Treatment acquisition represents a challenge but also a significant opportunity for our company – and a real plus for the customers,” said Pennsylvania American Water President Kathy L. Pape. “We appreciate that the Public Utility Commission recognizes our track record in taking over troubled systems and committing the technical expertise and resources needed to bring these operations into regulatory compliance.”

Pape said, “Once we’re able to address the many operational and environmental issues, we look forward to getting permission to lift the moratorium and bring wastewater service to many of the available lots in Marcel Lakes Estates that have been in limbo for years.”

Also in Delaware Township, Pike County, the company acquired a private water system serving nearly 300 residents of the Pocono Mountain Lake Forest Estates development.

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