American Water merging with Peoples Natural Gas owners
A multi-billion dollar merger will affect two utilities that currently have customers across Butler County and Western Pennsylvania.
Essential Utilities is merging with American Water. The two companies announced the deal Monday, Oct. 27, in what will create a utilities conglomerate worth $63 billion.
Essential Utilities owns Peoples Natural Gas. Meanwhile, Pennsylvania American Water is a subsidiary of American Water, one of the largest water utilities in the country.
In a news release and a published frequently asked questions document, the two companies said there will be no change in customer rates due to the merger. They also claimed the combined company will be better able to maintain “an average customer water bill that is affordable.”
“By joining forces with Essential, the combined company’s enhanced scale and operational efficiency will support continued investment in our critical infrastructure, enabling us to continue providing superior customer service at affordable rates,” John C. Griffith, American Water’s president, said in the news release.
The two companies said the merger will benefit both the customers and communities they serve by expanding resources to “help solve water and wastewater challenges,” and spend more money on “infrastructure renewal, resiliency, water quality, technology and growth projects.”
The companies also said billing options will remain the same through the close of the merger.
Currently, PA American Water provides water and wastewater services to around 2.4 million people, according to its website. Portions of Butler County, as well as elsewhere in Western Pennsylvania, get their water and sewage services from PA American Water.
Peoples Natural Gas has over 700,000 customers in Western Pennsylvania.
Essential Utilities is also the owner of Aqua, a water and wastewater utility that serves millions of customers in eight states, including eastern Pennsylvania.
The merger is expected to be completed in the first quarter of 2027 following review from federal antitrust authorities.
