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Pennsylvania American Water Completes Acquisition of Audubon Water Company

1. Pennsylvania American Water acquired Audubon Water Company, enhancing service in Lower Providence. 2. The acquisition serves 2,900 customer connections and includes a $21.5 million investment. 3. PUC approved the purchase, allowing infrastructure improvements for reliable drinking water. 4. Regional consolidation addresses aging infrastructure and regulatory challenges in Pennsylvania. 5. Customer assistance programs support low-income households with notable service discounts.

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FAQ

Why Bullish?

The acquisition improves infrastructure and customer base, potentially increasing revenue and market share.

How important is it?

The acquisition directly strengthens Pennsylvania American Water’s position, benefiting AWK indirectly.

Why Long Term?

Investments will enhance service quality and reliability, benefiting AWK's long-term growth prospects.

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MECHANICSBURG, Pa.--(BUSINESS WIRE)--Pennsylvania American Water announced today it has completed its acquisition of Audubon Water Company (Audubon). The newly acquired water system serves approximately 2,900 customer connections in Lower Providence Township in Montgomery County. The system is located directly between Pennsylvania American Water’s existing Royersford and Norristown water systems. “Pennsylvania American Water couldn’t be more pleased to welcome our new water customers in Lower Providence Township,” said Justin Ladner, president of Pennsylvania American Water. “We look forward to providing this community with safe, clean, reliable service by delivering on our technical expertise and decades of water experience.” Over the next five years, Pennsylvania American Water plans to invest approximately $21.5 million in Audubon system improvements. The improvements will include targeted main restorations and replacements, technology and control systems enhancements and treatment plant upgrades. The company has a long and successful track record of providing solutions for water systems facing significant capital investment needs and making the necessary investments to meet current and future requirements. Audubon agreed to sell its water system to Pennsylvania American Water in September 2023, citing that the proposed sale was important because it would allow for necessary infrastructure improvements to be made that will secure long-term access to safe drinking water for the community. With the acquisition, Pennsylvania American Water also welcomed seven of the system’s employees to its local team. In a recent letter to the editor published by the Norristown Times Herald, former Pennsylvania Senator John Rafferty, who lives in the Audubon service area, shared his thoughts on the benefits of the acquisition: “Audubon Water Company has served a populated portion of Lower Providence Township for decades. The community has experienced tremendous growth during the company’s history. Their recent decision to sell their water system to Pennsylvania American Water wasn’t just practical – it was responsible. Residents will benefit from a company with the technical expertise, investment capacity and a proven track record of improving systems just like Audubon’s. In my community, that means Audubon residents will see real improvements: more reliable service, modern infrastructure and investments that prepare the system for long-term growth – not just short-term fixes.” The purchase was approved by the Pennsylvania Public Utility Commission (PUC) on January 23, 2025. In accordance with the PUC’s approval, Pennsylvania American Water will adopt the rates currently being charged to the system’s customers. The PUC regulates the company’s rates and rules and regulations of service; therefore, any future rate changes will require review and approval by the PUC. As many water and wastewater systems across Pennsylvania face challenges stemming from aging infrastructure and growing water quality and environmental regulation, regional consolidation, as seen with this acquisition, has been identified as a viable solution. Pennsylvania American Water’s scale as the commonwealth’s largest water and wastewater company differentiates it from other service providers in terms of the types of solutions it is able to offer communities in need. Pennsylvania American Water offers multiple customer assistance programs, including its longstanding H2O Help to Others Program™. For qualifying water customers, the program offers grants of up to $500 per year, a 30-90% discount on the monthly service fee and a 20-80% discount on monthly volumetric charges. 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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