Pennsylvania American Water Signs Agreements to Purchase the Indian Creek Valley Water Authority and Sutersville-Sewickley Municipal Sewage Authority
'The planned acquisitions of the Indian Creek Valley Water Authority and the Sutersville-Sewickley Municipal Sewage Authority are a natural fit for our company," said Justin Ladner, president of Pennsylvania American Water. 'With a strong presence in nearby communities, we're in a great position to bring additional value through regionalization – combining resources and expertise to deliver more reliable, efficient and high-quality water and wastewater services to the residents of these systems.'
The proposed $32.8 million acquisition of the Fayette County-based Indian Creek Valley Water Authority includes approximately 2,700 metered customer connections and a water system supported by two springs, one well and a surface water treatment plant with a combined capacity of nearly 1 million gallons per day.
'We, as an Authority Board, are concerned about the long-term viability of serving water in our community,' said Dave Cramer, Indian Creek Valley Water Authority board chairman. 'We face many challenges and have limitations in our ability to invest in the system and maintain a large, spread-out network sourcing water from multiple locations. It has also become harder to meet Pennsylvania Department of Environmental Protection compliance. Partnering with Pennsylvania American Water makes sense due to their local engineering expertise and financial capacity to improve our system significantly.'
The system spans approximately 140 miles of distribution mains and includes five booster pumping stations and 11 finished water storage tanks. Pennsylvania American Water anticipates investing approximately $8.9 million in system improvements following the acquisition.
The proposed $3.25 million acquisition of the Sutersville-Sewickley Municipal Sewage Authority, which serves customers in Westmoreland County, includes approximately 500 customers.
'When I joined the Sewage Board, we faced serious financial hurdles and aging infrastructure,' said the board's president, Bruce Riley. 'After careful analysis, we determined that partnering with Pennsylvania American Water was the best path forward. Their ability to invest in the system and offer robust customer assistance, especially for low-income residents, was key. We held public meetings, and while questions were raised, many supported the sale. Our community can trust they'll receive reliable, high-quality service.'
The Sutersville-Sewickley Municipal Sewage Authority wastewater system features approximately 12 miles of collection mains and three pumping stations. Following the acquisition, Pennsylvania American Water plans to invest an estimated $800,000 in system improvements to enhance service reliability and environmental compliance.
The Pennsylvania Public Utility Commission (PUC) regulates the company's rates and reviews and approves any future rate changes. Pennsylvania American Water will seek all necessary approvals from its regulators and expects both transactions to close by third quarter 2026.
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.
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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