Pennsylvania American Water to Acquire Pittston’s Wastewater Collection System in $26.4 Million Deal
In a strategic move that underscores its expanding role in providing essential utility services across Pennsylvania, Pennsylvania American Water has entered into a definitive agreement with the City of Pittston to acquire the municipality’s wastewater collection system. The transaction, valued at approximately $26.4 million, represents a significant step forward in the city’s infrastructure modernization efforts while deepening Pennsylvania American Water’s presence in Luzerne County.
The wastewater system currently serves around 4,400 customers within the City of Pittston. This acquisition will bring those customers under the utility management of Pennsylvania American Water, which already supplies drinking water services to the city. With more than 135,000 customer connections throughout the surrounding region, the company is no stranger to the area, and this new transaction is expected to yield operational efficiencies and infrastructure upgrades beneficial to both the utility and its customers.
Strengthening a Long-Standing Utility Relationship
“We’re committed to our customers, providing high-quality water and wastewater services to help protect public health and the environment,” said Justin Ladner, President of Pennsylvania American Water. “We’re already the water service provider for residents of the City of Pittston, and we are truly honored that city leaders recognize the value we provide and that they’ve decided to entrust us with the future ownership of their wastewater collection system.”
Ladner emphasized the importance of the trust placed in Pennsylvania American Water by the city administration, noting that this partnership is built on a strong foundation of reliable service delivery, transparency, and shared goals for long-term sustainability.
The agreement is not just about ownership transfer; it also includes a clear commitment to critical infrastructure investment. Pennsylvania American Water has pledged to invest more than $5.1 million over the next five years in system improvements. These upgrades will address aging infrastructure and include main replacements, modernization of existing technology platforms, the introduction of advanced safety and security systems, and enhanced geographic information system (GIS) mapping capabilities.
A City-Focused, Community-Driven Decision
Pittston Mayor Michael Lombardo voiced his support for the agreement, highlighting the benefits it will bring not only to the municipality’s operations but also to the everyday lives of residents.
“After a thorough and professional vetting process of potential purchasers for the city’s sewer conveyance system, I am pleased to announce that Pennsylvania American Water has presented the most beneficial proposal,” said Mayor Lombardo. “Their plan offers a strong opportunity for the City, particularly in terms of future infrastructure modernization, ongoing maintenance, and thoughtful consideration of both current and future rates, especially for our homeowners, seniors, and residents on fixed incomes.”
According to the mayor, the city’s decision was driven by a combination of practical and long-term fiscal considerations. By transitioning ownership of the sewer system to a specialized and regulated utility company, the city aims to secure a more sustainable future while improving service quality. Lombardo emphasized that the negotiated sale price, coupled with Pennsylvania American Water’s planned investments, will significantly enhance the city’s financial standing. These proceeds will be allocated to various civic priorities, including the creation of reserve funds that can help cushion residents from future fee increases and potentially support homeowner tax relief.
“This is a forward-thinking initiative,” added Lombardo. “I’m proud of the work done by city council and my administrative team, and I’m confident in strengthening our already strong partnership with the Pennsylvania American Water team.”
Infrastructure Investment and Public Benefits
As cities across the country face mounting pressure to upgrade aging water infrastructure and address environmental compliance issues, public-private partnerships like the one between Pittston and Pennsylvania American Water are becoming increasingly common. The promise of over $5.1 million in capital improvements within the next half-decade demonstrates a commitment to proactive maintenance and modernization that many smaller municipalities may struggle to fund independently.
Planned infrastructure improvements include the replacement of aging mains that are prone to leakage or failure, updates to monitoring and control technologies for better system oversight, and investments in security systems to protect critical assets. Additionally, enhancements to the city’s GIS infrastructure will provide improved system visibility, allowing for more efficient maintenance and emergency response.
Such initiatives are aimed at increasing reliability, reducing system downtime, and better preparing the wastewater system for future growth and climate-related challenges.
Financial Impacts and Community Investments
From a financial perspective, the City of Pittston stands to gain significantly from this agreement. As the current sole owner of the wastewater collection system, the city will receive the full proceeds from the $26.4 million sale. These funds are earmarked for a variety of community-oriented investments and essential services.
One of the key projects expected to benefit from this financial boost is the Market & Main project, a mixed-use urban development initiative aimed at revitalizing the downtown core. The centerpiece of this project is a seven-story building featuring retail and housing space, as well as the 630-seat American Theatre, which will serve as a cultural and entertainment hub for residents and visitors alike.
City officials believe the sale will help support initiatives that improve quality of life, attract new business and residential development, and promote long-term economic resilience.
Continuity in Service and Rate Protections
City of Pittston customers will not face immediate changes to their rates upon transfer of the system. Under the proposed agreement, customers would be brought onto Pennsylvania American Water’s service platform at the same collection rates in place at the time of transaction close. Any future changes in rates must be reviewed and approved by the Pennsylvania Public Utility Commission (PUC), which provides oversight to ensure fairness and transparency in utility pricing.
It is important to note that while Pennsylvania American Water will be managing the collection portion of the wastewater service, the Wyoming Valley Sanitary Authority (WVSA) will continue to handle wastewater treatment. WVSA bills customers directly for treatment services, meaning this acquisition pertains solely to the conveyance and collection infrastructure.
