Pennsylvania American Water Receives $19.3 Million in PENNVEST Funding to Make Water and Wastewater Infrastructure Improvements
Pennsylvania American Water has secured $19.3 million in PENNVEST funding for two major infrastructure projects. The package includes a $2.46 million loan and $1.64 million grant for upgrading the Kinzua Road Wastewater Treatment Plant in Kane Borough, McKean County. These improvements will increase the plant's peak wet weather flow capacity from 3.5 MGD to 5.25 MGD and enhance multiple operational aspects.
Additionally, a $15.2 million loan will fund the replacement of 250 lead water service lines in Homestead Borough, Allegheny County. The Kinzua project loan terms are 1% for 30 years, while the Homestead Borough project loan terms are 1% for the first five years and 1.743% for the remaining 15 years.
Pennsylvania American Water ha ottenuto 19,3 milioni di dollari di finanziamenti PENNVEST per due importanti progetti infrastrutturali. Il pacchetto include un prestito di 2,46 milioni di dollari e una sovvenzione di 1,64 milioni di dollari per l'aggiornamento del Impianto di Trattamento delle Acque Reflue Kinzua Road a Kane Borough, nella contea di McKean. Questi miglioramenti aumenteranno la capacità massima di flusso dell'impianto in caso di maltempo da 3,5 MGD a 5,25 MGD e miglioreranno vari aspetti operativi.
Inoltre, un prestito di 15,2 milioni di dollari finanzierà la sostituzione di 250 tubazioni di servizio dell'acqua in piombo a Homestead Borough, nella contea di Allegheny. I termini del prestito per il progetto Kinzua sono dell'1% per 30 anni, mentre i termini del prestito per il progetto di Homestead Borough sono dell'1% per i primi cinque anni e 1,743% per i restanti 15 anni.
Pennsylvania American Water ha asegurado 19,3 millones de dólares en financiamiento de PENNVEST para dos importantes proyectos de infraestructura. El paquete incluye un préstamo de 2,46 millones de dólares y una subvención de 1,64 millones de dólares para mejorar la Planta de Tratamiento de Aguas Residuales Kinzua Road en Kane Borough, condado de McKean. Estas mejoras aumentarán la capacidad máxima de flujo del término húmedo de la planta de 3,5 MGD a 5,25 MGD y fortalecerán múltiples aspectos operativos.
Además, un préstamo de 15,2 millones de dólares financiará la sustitución de 250 líneas de servicio de agua de plomo en Homestead Borough, condado de Allegheny. Los términos del préstamo para el proyecto Kinzua son del 1% durante 30 años, mientras que los términos del préstamo para el proyecto de Homestead Borough son del 1% durante los primeros cinco años y 1,743% durante los 15 años restantes.
Pennsylvania American Water는 두 개의 주요 인프라 프로젝트를 위해 1930만 달러의 PENNVEST 자금을 확보했습니다. 이 패키지는 케인 버러에 있는 Kinzua Road 하수 처리 시설의 업그레이드를 위해 246만 달러의 대출과 164만 달러의 보조금을 포함합니다. 이러한 개선 사항은 시설의 최대 우천 유량을 3.5 MGD에서 5.25 MGD로 증가시키고 여러 운영 측면을 강화할 것입니다.
또한, 1520만 달러의 대출는 앨레게니 카운티의 홈스테드 버러에서 250개의 납 수돗물 서비스 라인을 교체하는 비용을 지원할 것입니다. Kinzua 프로젝트의 대출 조건은 30년 동안 1%이며, 홈스테드 버러 프로젝트의 대출 조건은 첫 5년 동안 1%이고 이후 15년 동안 1.743%입니다.
Pennsylvania American Water a obtenu 19,3 millions de dollars de financement PENNVEST pour deux grands projets d'infrastructure. Le paquet comprend un prêt de 2,46 millions de dollars et une subvention de 1,64 million de dollars pour la modernisation de la Station d'Épuration des Eaux Usées Kinzua Road dans le borough de Kane, dans le comté de McKean. Ces améliorations augmenteront la capacité maximale de l'usine en période de temps humide de 3,5 MGD à 5,25 MGD et amélioreront plusieurs aspects opérationnels.
De plus, un prêt de 15,2 millions de dollars financera le remplacement de 250 conduites d'eau en plomb dans le borough de Homestead, dans le comté d'Allegheny. Les conditions de prêt pour le projet Kinzua sont de 1% pendant 30 ans, tandis que celles pour le projet du borough de Homestead sont de 1% pendant les cinq premières années et de 1,743% pour les 15 années restantes.
Pennsylvania American Water hat 19,3 Millionen Dollar an PENNVEST-Finanzierung für zwei wichtige Infrastrukturprojekte gesichert. Das Paket umfasst ein Darlehen von 2,46 Millionen Dollar und einen Zuschuss von 1,64 Millionen Dollar zur Modernisierung der Kinzua Road Kläranlage in Kane Borough, McKean County. Diese Verbesserungen werden die maximale Spitze der Wettersituation der Anlage von 3,5 MGD auf 5,25 MGD erhöhen und mehrere betriebliche Aspekte optimieren.
Darüber hinaus wird ein Darlehen in Höhe von 15,2 Millionen Dollar die Erneuerung von 250 Bleiwasseranschlussleitungen in Homestead Borough, Allegheny County, finanzieren. Die Darlehensbedingungen für das Kinzua-Projekt betragen 1% für 30 Jahre, während die Darlehensbedingungen für das Projekt in Homestead Borough 1% für die ersten fünf Jahre und 1,743% für die verbleibenden 15 Jahre betragen.
- Secured $19.3M in low-interest PENNVEST funding
- Plant capacity increase from 3.5 MGD to 5.25 MGD at Kinzua facility
- Elimination of 250 lead service lines improving water quality
- Favorable loan terms (1-1.743%) for infrastructure improvements
- None.
Insights
The $19.3 million PENNVEST funding package represents a strategic win for Pennsylvania American Water and its parent company American Water Works (AWK). This financing structure, combining $17.66 million in low-interest loans and a $1.64 million grant, significantly reduces the capital burden for essential infrastructure improvements.
The Kinzua Road project's expansion from 3.5 MGD to 5.25 MGD capacity addresses two critical business objectives: regulatory compliance with overflow requirements and operational efficiency through modernized systems. The 1% fixed rate for 30 years on this portion is particularly advantageous given the current high-interest rate environment, potentially saving millions in financing costs over the term.
The lead service line replacement initiative in Homestead Borough aligns with increasingly stringent EPA regulations and positions AWK ahead of potential regulatory mandates. The 1% initial rate for five years, followed by 1.743% for the remaining 15 years, helps optimize the capital structure while addressing critical infrastructure needs.
From an investor perspective, this funding demonstrates AWK's ability to leverage public financing mechanisms effectively, reducing the need for equity or higher-cost debt financing. The projects support long-term rate base growth while minimizing the immediate impact on customer bills, creating a positive regulatory environment for future rate cases.
“At Pennsylvania American Water, we strive to provide our customers with high-quality, reliable water and wastewater services while also meeting environmental standards and regulations. We’re thankful to PENNVEST for approving funding requests for projects that will support us in those efforts,” said Pennsylvania American Water Interim Vice President of Engineering Tony Nokovich. “This funding will have a positive impact on the service provided for many of our customers by enabling us to continue our efforts to remove lead service lines and also to repair aging wastewater infrastructure.”
A PENNVEST loan of
Another
The terms of the loan for the Kinzua Road Wastewater Treatment Plant project are
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
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About Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and wastewater services to approximately 2.3 million people.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250124827174/en/
Media Contact:
David Misner
Senior Manager, External Communications
717-262-7525
david.misner@amwater.com
Source: Pennsylvania American Water
FAQ
How much PENNVEST funding did Pennsylvania American Water (AWK) receive in 2024?
How many lead service lines will AWK replace in Homestead Borough?
What is the capacity increase for AWK's Kinzua Road Wastewater Treatment Plant?
What are the loan terms for AWK's Homestead Borough lead line replacement project?
How much of the PENNVEST funding for AWK's Kinzua project is grant versus loan?
