Mercer International: Essential Utilities Acquires Greenville Sanitary Authority for $18 Million

Essential Utilities Expands Reach in Pennsylvania with Strategic Acquisition

Essential Utilities, Inc. has solidified its presence in the wastewater management sector by acquiring the Greenville Sanitary Authority’s wastewater system through its subsidiary, Aqua Pennsylvania. This $18 million acquisition, which serves the communities of Greenville Borough, Hempfield, and West Salem Townships in Mercer County, PA, marks a significant step forward for the company. The Pennsylvania Public Utility Commission (PUC) recently approved the sale, a notable development underscored by recent improvements to the fair market value statute, which Essential Utilities expects will invigorate the municipal acquisition market in Pennsylvania in 2025.

Chairman and CEO Christopher Franklin emphasizes the company's commitment to enhancing service quality for its new customers in Mercer County. Essential Utilities plans to invest an additional $20 million over the next decade to rectify deficiencies within the wastewater system. The areas targeted for improvement include critical aspects such as storage, treatment plant ventilation, and emergency power generation. This strategic investment not only aims to bolster the system's reliability but also promises substantial savings for customers; Aqua Pennsylvania projects a savings of over $20 million compared to the Greenville Sanitary Authority’s anticipated costs to comply with a Consent Order Agreement mandated by the Pennsylvania Department of Environmental Protection.

With this acquisition, Aqua Pennsylvania expands its customer base by adding 2,600 new customers, bringing the total number of equivalent dwelling units (EDUs) served to 4,520. The company, which currently provides water and wastewater services to around 1.5 million residents across Pennsylvania, is committed to maintaining stable customer rates following the transition. Future adjustments to these rates will require approval from the PUC. Furthermore, eligible customers will benefit from Aqua’s low-income Customer Assistance Program, reinforcing the company's dedication to accessibility and support for its customer base.

In addition to this acquisition, Aqua Pennsylvania's recent endeavors reflect a broader trend in the regional utility sector, where strategic investments in infrastructure are becoming increasingly vital. The company's proactive approach not only enhances service reliability but also serves as a blueprint for other utilities looking to modernize and expand their operations amid changing regulatory landscapes. As Essential Utilities continues to pursue growth through acquisitions, the focus remains on delivering safe, reliable, and cost-effective services to its expanding customer base.