Pennsylvania American Water Signs Agreement to Purchase the City of Pittston’s Wastewater System

Pennsylvania American Water to Invest Over $5 Million in First Five Years

MECHANICSBURG, Pa.--(BUSINESS WIRE)-- Pennsylvania American Water announced today that it signed an agreement with the City of Pittston to acquire its wastewater collection system for $26.4 million. The system serves approximately 4,400 customers throughout the city. Pennsylvania American Water is already the drinking water service provider for the City of Pittston and has more than 135,000 customer connections in the region.

“We’re committed to our customers, providing high-quality water and wastewater services to help protect public health and the environment,” said Pennsylvania American Water President Justin Ladner. “We’re already the water service provider for residents of the City of Pittston, and we are truly honored that city leaders recognize the value we provide and that they’ve decided to entrust us with the future ownership of their wastewater collection system. We look forward to continuing to build upon our strong existing relationship.”

As part of the agreement, Pennsylvania American Water has agreed to make necessary collection system upgrades, which are expected to total more than $5.1 million over five years. Specifically, the company plans to make significant investments in main replacements; technology updates; security and safety systems; and geographic information system improvements.

"After a thorough and professional vetting process of potential purchasers for the City’s sewer conveyance system, I am pleased to announce that Pennsylvania American Water has presented the most beneficial proposal,” said Pittston Mayor Michael Lombardo. “Their plan offers a strong opportunity for the City, particularly in terms of future infrastructure modernization, ongoing maintenance and thoughtful consideration of both current and future rates, especially for our homeowners, seniors and residents on fixed incomes.”

He added, “The purchase price and future investments committed to by Pennsylvania American Water will support the City’s long-term financial stability, create reserve funding to help offset rising fees and may even allow for additional homeowner tax relief. I’m proud of the work done by city council and my administrative team on this forward-thinking initiative, and I’m confident in strengthening our already strong partnership with the Pennsylvania American Water team."

As the sole owner of the collection system, the City of Pittston would receive the proceeds from this proposed sale. It plans to use proceeds to support essential services for residents and to make various other community improvements, including support of the Market & Main project – a seven-story building that encompasses housing, retail and the 630-seat American Theatre.

As proposed, City of Pittston customers would be brought on at current collection rates at the time of the transaction close. The company’s rates are set by the Pennsylvania Public Utility Commission (PUC), and any future rate changes must be reviewed and approved by the PUC. Wastewater treatment is provided by Wyoming Valley Sanitary Authority, which bills customers directly for treatment service.

Pennsylvania American Water’s H2O Help to Others Program™ offers income-based financial assistance for customers in need. Details are available at pennsylvaniaamwater.com/H2O.

Pennsylvania American Water will seek all necessary approvals from its regulators and expects to close the transaction by late 2026.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,700 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing safe, clean, reliable and affordable water and wastewater services to approximately 2.4 million people.

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Media Contact:

David Misner

Senior Manager, External Communications

717-261-7525

david.misner@amwater.com

Source: Pennsylvania American Water