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PAWC makes offer to buy Butler Area Sewer Authority

The Butler Area Sewer Authority's wastewater treatment facility is pictured on Litman Road on Friday in Butler Township. Joseph Ressler/Butler Eagle

After more than eight months of confidential negotiations, Pennsylvania American Water Co. has offered the Butler Area Sewer Authority $231.5 million to purchase the sewer system.

The announcement was made at Tuesday morning’s authority meeting.

The deal would be the second-largest sewer system purchase for PAWC, with the most expensive purchase having happened in April 2021 in York, Pa., for $235 million.

PAWC sweetened the deal for BASA customers by announcing a potential pilot program that would pay the cost for repair and replacement of failing lateral lines, which carry sewer from a customer’s home or business to the sewer lines.

Currently, customers are responsible for lateral lines and spend an average of $8,500 to replace a lateral.

Proceeds from the sale would first pay down BASA’s $49 million in debt, then the profit from the sale would likely be split 50/50 between Butler and Butler Township.

Customer open houses will be held in the city and township, where BASA, PAWC, city and township officials will be on hand to discuss the plan to sell the sewer system.

All BASA employees would be retained in the purchase.

The deal could close next fall if the process goes according to plan.

A portion of this story is shared with you as a digital media exclusive. To read the full story and support our local, independent newsroom, please subscribe at butlereagle.com.

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