Aqua Pennsylvania finalises $18m acquisition of Greenville wastewater system

Aqua Pennsylvania, a subsidiary of Essential Utilities, Inc. (NYSE: WTRG), has completed its $18 million acquisition of the Greenville wastewater system, a move set to enhance service reliability and reduce long-term operational costs for residents. The purchase, approved by the Pennsylvania Public Utility Commission (PUC) on December 12, 2024, transfers control of the Greenville Sanitary Authority‘s wastewater system to Aqua Pennsylvania, which now serves more than 1.5 million residents across 32 counties in Pennsylvania.

The transaction is notable as the first acquisition approved under Pennsylvania’s updated fair market value statute, a legislative change expected to accelerate municipal wastewater acquisitions across the state in 2025.

Why Did Aqua Pennsylvania Acquire the Greenville Wastewater System?

The Greenville wastewater system faced significant financial and operational hurdles, with aging infrastructure requiring an estimated $35 million to $40 million in upgrades to meet regulatory compliance. The Greenville Sanitary Authority, which oversees the system in Greenville Borough, Hempfield Township, and West Salem Township, struggled with funding constraints, leading to concerns over long-term system sustainability.

By acquiring the system, Aqua Pennsylvania acquisition ensures that the required infrastructure upgrades are implemented without passing excessive financial burdens onto customers. Essential Utilities Chairman & CEO Christopher Franklin underscored the company’s commitment, stating that they are well-positioned to make the necessary investments to ensure safe, reliable service for customers in Mercer County. He added that the acquisition allows them to apply their expertise and financial resources to enhance the system while keeping costs manageable for residents.

What Upgrades Will Aqua Pennsylvania Implement in Greenville?

Following the acquisition, Aqua Pennsylvania has committed to investing $20 million over the next decade to modernize the Greenville wastewater system. These upgrades will address critical safety, operational, and environmental deficiencies while ensuring compliance with state and federal regulations.

A major focus of the investment will be on upgrading wastewater treatment infrastructure to improve efficiency and reliability. Aqua Pennsylvania also plans to enhance emergency and standby power generation to prevent service disruptions, resolving longstanding issues that have plagued the system. Additionally, the company will address ventilation issues at treatment plants to meet environmental and worker safety standards, ensuring that facilities operate at optimal levels.

The company will also focus on improving permit compliance measures to align with Pennsylvania Department of Environmental Protection (DEP) mandates. This is expected to significantly reduce the risk of regulatory penalties and ensure that the system meets modern environmental standards. By implementing these enhancements, Aqua Pennsylvania acquisition is expected to save customers more than $20 million in infrastructure costs compared to the Greenville Sanitary Authority’s original compliance strategy.

What Does This Acquisition Mean for Greenville Residents?

For customers currently served by the Greenville wastewater system, the transition to Aqua Pennsylvania will not result in any immediate rate increases. Future rate adjustments will remain subject to approval from the Pennsylvania Public Utility Commission, ensuring that any changes are carefully reviewed for fairness and affordability.

Additionally, residents will gain access to Aqua Pennsylvania’s low-income Customer Assistance Program (CAP) and the hardship fund Aqua Aid, providing financial relief to qualifying customers struggling with utility costs. This is expected to be a significant benefit for residents who have previously had limited financial assistance options.

In the coming months, Aqua Pennsylvania will communicate directly with residents to outline service expectations, billing procedures, and maintenance schedules as part of the transition process. Customers will receive detailed updates regarding any planned maintenance, ensuring transparency throughout the integration period.

How Does This Acquisition Fit Into Essential Utilities’ Growth Strategy?

The purchase of the Greenville wastewater system is part of Essential Utilities’ broader expansion strategy, which prioritizes municipal wastewater acquisitions to modernize aging infrastructure while ensuring cost-effective service delivery.

Over the past year, Essential Utilities has completed four water and wastewater acquisitions, adding approximately 2,600 new customers to its network. This latest acquisition aligns with the company’s long-term investment plan, which includes more than $362 million in ongoing purchase agreements for water and wastewater systems.

According to Aqua Pennsylvania President Marc Lucca, the company’s operational expertise and financial resources allow it to make necessary system improvements more efficiently than local municipal authorities. He emphasized that they have a strong track record of partnering with municipalities to enhance infrastructure while keeping costs manageable for residents. He added that the repairs and upgrades to the Greenville wastewater system will be cost-effective while improving reliability and performance.

What’s Next for Aqua Pennsylvania?

With the Greenville wastewater system now integrated into its portfolio, Aqua Pennsylvania continues to seek new opportunities to expand its water and wastewater infrastructure.

In addition to this acquisition, the company has secured $29 million in funding from the Pennsylvania Infrastructure Investment Authority (PENNVEST) to support water quality improvements across the state. This funding will enable the company to install advanced treatment systems to address PFAS contamination, a growing concern for drinking water safety.

As the company continues to expand its footprint, it remains committed to delivering safe, sustainable, and affordable water and wastewater services to communities across Pennsylvania. Aqua Pennsylvania’s efforts are expected to have a lasting impact on the communities it serves, ensuring that residents have access to high-quality wastewater treatment solutions for years to come.