American Water Makes DELCORA an Offer as Negotiations Continue With Aqua PA
First, Aqua Pennsylvania expressed an interest in merging with DELCORA. Now, American Water is looking for some action with the water quality control authority, writes Kathleen E. Carey for the Daily Times.
DELCORA handles the county’s wastewater. It’s considering a merger with Aqua PA to cope with costly federal mandates, projecting future capital costs of about $1.2 billion.
American Water wants to negotiate with DELCORA for a similar deal.
DELCORA officials said they don’t think American Water is a good fit, said Jay Devine, DELCORA spokesman.
Aqua, founded in Springfield, already has a presence in the area.
“Aqua Pennsylvania has 150,000 customers in Delaware County and 70,000 customers in Chester County,” Devine said. “American Water does not have any customers in Delaware County.”
Susan Story, president and CEO of American Water, indicated in a letter to DELCORA that customer rates would stay the same or be better under American Water, and that all DELCORA employees would be hired.
American Water said it would offer $100 to $400 million or more for the authority’s assets, take on its capital investment responsibilities and make revenue sharing available to communities..
Read more about American Water and DELCORA here.
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