Aqua Ohio expands footprint with $25.5m Union Rome sewer system purchase
Aqua Ohio, a subsidiary of Essential Utilities Inc., has finalized the purchase of the Union Rome Sewer (URS) system for $25.5 million, marking an expansion of its footprint in Lawrence County, Ohio.
The newly acquired system, serving 5,300 connections, includes a wastewater treatment plant and collection network.
For years, the URS system has operated at a deficit, accruing over $20 million in debt and requiring significant funding for repairs and improvements to meet regulatory standards.
Essential Utilities seeks to address this shortfall by investing over $12.7 million in the wastewater system over the next five years to meet regulatory and environmental requirements. All existing URS employees have been offered positions at Aqua, subject to the company’s standard hiring procedures.
The acquisition of URS aligns with Essential Utilities’ regional expansion strategy, aimed at growing by investing in infrastructure that ensures the delivery of clean, safe, and reliable natural resources to both residential and business customers. This strategy encompasses water and wastewater services.
The purchase of Union Rome is the second acquisition for Essential Utilities’ regulated water segment in 2023, following the March acquisition of the Pennsylvania-based North Heidelberg Sewer Company.
Chris Franklin — Essential Utilities Chairman and CEO said: “After serving customers in western Lawrence County with water service for decades, we look forward to expanding our impact in the region by addressing the many infrastructure issues with the Union Rome sewer system.
“We can uniquely support this community through our access to capital, technical expertise and economies of scale.”
Essential Utilities currently has seven purchase agreements signed for eight water and wastewater systems. These systems represent over 213,000 equivalent retail customers or dwelling units, with nearly $355 million in the total purchase price.
In 2022, Essential Utilities acquired three water and wastewater systems, contributing approximately $120 million in rate base and more than 23,000 new customers or equivalent dwelling units to the company’s expanding footprint.