PAW buys Wastewater system in Kane
Pennsylvania American Water has purchased the wastewater system in Kane, McKean County.
The system serves about 2,100 customers in Kane and in Wetmore Township, according to a Pennsylvania American Water release.
PAW paid $17.5 million for the system and will continue billing customers at the previous rate.
“As approved by the Pennsylvania Public Utility Commission (PUC), the company has adopted Kane’s existing wastewater rates and will continue to bill customers monthly,” Western PA External Affairs Manager Gary Lobaugh said.
“We are very pleased to close another significant acquisition that further expands our wastewater footprint in an area where we’ve been providing drinking water for more than 100 years,” President Mike Doran said. “The purchase provides a long-term wastewater solution to the community and a way to better address the financial burdens associated with increasing environmental requirements.”
“This transaction will greatly benefit our citizens’ future by eliminating the unfunded liability in the Borough’s pension plans and other post-employment benefits, as well as funding storm sewer improvements and equipment replacement expenses,” Kane Borough Manager Don Payne said. “It also will anchor the Borough’s economic development strategy as well as fund improvements to our park system.”
The borough’s four wastewater system employees are now employees of Pennsylvania American Water, Lobaugh said.