Pennsylvania American Water and Towamencin Township Complete Wastewater System Sale

Pennsylvania American Water (PAW) and Towamencin Township are beginning the process to close the sale of the township’s wastewater system, subject to formal approval at the next meeting of the Towamencin Board of Supervisors. On June 14, 2022, Towamencin entered into an asset purchase agreement (APA) to sell the township’s wastewater system to NextEra Water Pennsylvania, LLC (NextEra Water). In March 2023, NextEra Water exited the transaction and Pennsylvania American Water agreed to act as purchaser under substantially the same terms as agreed to by NextEra Water. PAW acquired the rights to the APA effective March 24, 2023.

On July 2, 2024, the Pennsylvania Public Utility Commission (PUC) finalized new criteria for reviewing the sale of public water and wastewater systems. The terms of the APA that Towamencin Township and NextEra Water initially agreed to, and now incorporated into the APA to which PAW is a party, differ significantly from the PUC’s new criteria. As PAW and Towamencin are currently beginning the process of terminating the existing APA.