The country's largest water utility is getting larger. American Water (NYSE:AWK) subsidiary Pennsylvania American Water -- that state's largest utility -- has acquired a municipal wastewater system in Beaver County that provides wastewater collection and treatment services to approximately 500 customers in Koppel Borough and a portion of Big Beaver Borough.
Pennsylvania American Water already supplies drinking water service to residents in both boroughs. The cost for the wastewater system, which is located in western Pennsylvania, was $1.8 million.
Pennsylvania American Water President Kathy L. Pape said: "An important benefit of this transaction is the greater efficiency we will achieve through economies of scale by supplying both water and wastewater service to this community, while providing the expertise needed to meet increasing regulatory standards."
Founded in 1886, American Water provides drinking water, wastewater, and other related services to an estimated 14 million people in more than 30 states and parts of Canada. Pennsylvania American Water already has 17,000 wastewater customers in Pennsylvania's Chester, Clarion, Monroe, Pike, and Washington counties.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Like Water Stocks? Here's a Look at Water ETFs
Water ETFs aren't all created equal. Here are the ones investors should consider -- and the ones they should avoid.
Hate Risk? You'll Love These 3 Stocks
Seeking security? American Water Works, Franco-Nevada, and Praxair may help you to cease your search.
2 Dividend Stocks You Can Buy and Hold Forever
American Water Works and Johnson & Johnson are among the very few stocks that you can keep forever -- and they've both beaten the market over the long term with less stock-price volatility.