Essential Utilities Inc. (NYSE:WTRG) today announced its Aqua Pennsylvania subsidiary completed the purchase of the Municipal Authority of the Borough of Shenandoah (MABS) water system for $12 million. MABS serves approximately 3,000 customers in Schuylkill County, PA.
“Our customers deserve a reliable system with consistently high water quality,” said James Rusin, MABS Chairman. “Getting there requires the expertise, technology resources, and operational skill that Aqua brings. It was equally important to choose someone who is committed to be part of our community.”
“We have a long history of municipal partnerships, and we are looking forward to partnering with the leadership and customers of MABS,” said Essential Chairman and CEO Christopher Franklin. “We are proud of our track record of making appropriate capital and operating changes to ensure that all of our customers receive clean, safe, reliable water. And we’re delighted to increase our commitment to Schuylkill County.”
Parts of the Shenandoah system’s water infrastructure date back to the 1800s. MABS currently has $5.5 million in debt and the system deals with frequent outages and main leaks. Water loss is estimated at some 60 percent.
More than $23 million of planned investments in 10 years
Essential plans to invest more than $23 million in MABS over the next 10 years, including $10 million to replace water mains. The infrastructure improvements promise system-wide cost savings over time by:
- increasing reliability and reducing water loss
- improving water quality
- improving operational efficiency and environmental performance
All full-time MABS employees were offered employment at Aqua, after completing the company’s standard hiring process.
The transaction adds to Essential’s regional footprint and builds on the company’s strategy to grow by investing in infrastructure that delivers clean, safe, and reliable natural resources – in this case water and wastewater treatment – to residential and commercial customers.
Shenandoah is the third acquisition completed by Essential’s regulated water segment in 2023, and the second system acquired by Aqua Pennsylvania. Collectively, these acquisitions have added over $37.5 million in rate base and nearly 9,000 new customers or equivalent dwelling units to the company’s footprint. Additionally, the company currently has signed seven purchase agreements to acquire eight water and wastewater systems in four of its existing states. Together these systems represent over 210,000 equivalent retail customers or equivalent dwelling units with nearly $343 million in purchase price.
