PA American Finishes Royersford System Purchase

ROYERSFORD PA – The acquisition of Royersford’s formerly public-owned wastewater system, which provides water treatment services to nearly 1,600 customers in the borough and a portion of Upper Providence Township, was officially completed Tuesday (May 25, 2021), Pennsylvania American Water said. The company, a subsidiary of American Water, already provides water services to the same area.

“Expanding our services in this area is a natural fit, allowing us to provide greater efficiencies for our customers while making much needed long-term investments,” Pennsylvania American Water President Mike Doran said.

During the next five years, he added, the company plans to invest about $1.6 million in Royersford wastewater system improvements. they’re expected to include replacing aging sewer mains, improving chemical feed systems, upgrading technology, telemetry and system controls, and improving site security.

Pennsylvania American Water’s $13 million purchase in Royersford was approved by the state Public Utility Commission and other agencies. Borough Council decided to sell its system in December 2019, after evaluating the borough’s long-term needs. It cited the potential for increased operating costs, maintenance and major capital improvement requirements as potential reasons to consider a sale.

The borough expects to “use the proceeds of this sale to take on other important capital projects, pay off all municipal debt, and potentially lower the cost of living here in Royersford by further stabilizing our tax base,” council President Anil Dham said.

With Tuesday’s change of ownership, two former borough workers became Pennsylvania American Water employees.

As part of the commission’s approval, the company agreed to adopt existing wastewater rates for customers, although service will now be billed on a monthly rather than a quarterly basis. Any future rate changes must be reviewed and approved by the commission, it added.

Photo of Royersford Borough Hall from Google StreetView