Press Release

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today approved the application of Pennsylvania-American Water Company to purchase the water system of Sligo and the Sligo Borough Authority. Sligo serves 353 residential, commercial, industrial and bulk sale customers in Sligo and a portion of Piney Township in Clarion County.

Pennsylvania-American will buy the water system for approximately $430,000. By late 2003, Pennsylvania-American plans to improve water quality by installing more than 34,000 feet of new pipelines to interconnect Sligo with the new Clarion Treatment Plant that the company is building.

Pennsylvania-American must file a tariff supplement with the PUC 60 days prior to providing service to Sligo customers. The tariff will reflect the rates that the company has in effect for comparable areas. Once the tariff supplement is submitted, the PUC will decide on rates for customers.

Customers in Sligo have experienced extremely poor water quality for years as a direct result of poor backfill practices in the surrounding surface coal mines. The new interconnection will eliminate this problem.

Hershey-based Pennsylvania-American serves more than two million customers in more than 318 communities across the state.