Butler and Butler Township will split the proceeds from the $230 million sale, following the payment of debts and liabilities, as the sole incorporators of Butler Area Sewer Authority and original investors in the wastewater system.

The sales agreement approved by the Pennsylvania Public Utility Commission includes several other provisions which the water company agreed to prior to the sale.

As part of the agreement, Pennsylvania American Water will contribute $3.5 million, or $700,000 annually over five years, to the company’s statewide hardship grant program, which helps low-income families pay overdue water and wastewater bills in emergencies. The company also will increase eligibility for hardship grants from 200% to 250% of federal poverty income guidelines.

Additionally, the water company can recoup only $228 million through customer rates, meaning the overall cost to be recovered in future rates will be lower, according to a news release from Ceisler Media, a communications group working with Pennsylvania American.

Customers will also see a rate freeze for at least one year from the sale’s closing date or Jan. 1, 2025 — whichever is later. Following the rate freeze, the company will propose moving BASA customer wastewater rates to 1.4 times the current system rate or PAWC’s proposed Rate Zone 1 system-average wastewater rates, whichever is lower. Any future proposed rate adjustments must undergo thorough governmental review and require PUC approval.

Pennsylvania American will assume responsibility for BASA’s ongoing capital cost projects, totaling over $75 million in critical infrastructure upgrades, and will prioritize local contractors for the work whenever possible. BASA’s $49 million debt will be eliminated using the proceeds from the sale.

BASA’s operation center will be maintained for a minimum of 10 years, and all current BASA employees, both union and non-union, will retain their jobs with existing salaries while continuing to have access to similar retirement and insurance benefits. Retirees’ pensions will remain unaffected, the news release said.

Finally, Pennsylvania American Water will petition the PUC to launch a pilot program aimed at replacing or repairing customers' water lines, potentially relieving individual customers of lateral repair costs, which can result in thousands of dollars in savings.