Pennsylvania American Water receives PPUC approval for BASA deal

Pennsylvania American Water, a subsidiary of American Water, received approval from the Pennsylvania Public Utility Commission to purchase the Butler Area Sewer Authority wastewater system for $230M. The approval follows a settlement agreement reached in August between the Office of Consumer Advocate, Office of Small Business Advocate, and Bureau of Investigation and Enforcement of the PUC. The settlement agreement approved today will significantly expand the company’s assistance programs to further address affordability. As part of the agreement, Pennsylvania American Water will nearly double its shareholder contribution to the hardship grant program, increasing the fund by $3.5 million over five years. The agreement also expands the program’s income eligibility criteria from 200 to 250 percent of Federal Poverty Income Guidelines, resulting in an estimated 52,900 additional water and 8,800 additional wastewater customers being eligible to receive bill assistance grants. The agreement also benefits commercial customers by establishing a payment arrangement program for commercial customers – previously only available to residential customers.