Pennsylvania American Water makes offer for Kane sewage system

By: 
Ted Lutz
Staff Writer

Pennsylvania American Water is offering to buy the Kane sewage system for $17,560,000. The offer was made public Tuesday at a meeting of the Kane Borough Sewer Authority at the borough building. The proposal to acquire the assets of the authority comes about two months after Pennsylvania American Water rejected a proposed price of $22,982,500.
This figure was set after both the authority and Pennsylvania American conducted independent appraisals of the sewer system. The authority appraisal is $22,200,000. The company appraisal is even higher at $23,765,000.The authority expects that its close-out financial obligations will total about $5 million. Another $1 million will go into an escrow account for a year to cover possible expenses such as right-of-way agreements, it has been noted. The borough also is facing DEP pressure to upgrade its stormwater management system.

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