Pennsylvania American Water acquires troubled water system in northeast Pennsylvania

HERSHEY, PA. — Pennsylvania American Water, a wholly owned subsidiary of American Water, has acquired the water system assets of Birch Acres Water Works Inc. in Monroe County, Pa. The transaction marks Pennsylvania American Water’s third water system acquisition in 2010.

The newly acquired system serves nearly 150 people in Smithfield Township and is located close to the company’s existing Country Club of the Poconos water system. The transaction is valued at approximately $56,000.
With this acquisition, Pennsylvania American Water takes over a troubled water system that has experienced frequent service outages due to aging, leaking water lines, according to Pennsylvania American Water President Kathy L. Pape. “We are prepared to devote the resources and technical expertise to resolve the service reliability problems that have plagued this community, as well as improve fire protection for Birch Acres residents,” she said.

Pennsylvania American Water will make approximately $350,000 in needed capital improvements during the next several months, weather permitting, to replace much of the system’s aging pipe. The company also plans to interconnect the newly acquired system with its Country Club of the Poconos water system in 2011 to improve service reliability and to enable the installation of fire hydrants to provide fire protection for Birch Acres.
This transaction follows Pennsylvania American Water’s purchases of the Nittany Water Co. serving Centre and Clinton counties in February, and the Sutton Hills Homeowners Association water system near Wilkes-Barre in May.

For more information, visit www.amwater.com.