Customers of the water authority serving the Donegal area and several Fayette County communities may comment during three upcoming public hearings on the proposed $32.8 million sale of the local water provider to the state’s largest private water utility.
Pennsylvania American Water Co. is seeking approval from the Pennsylvania Public Utility Commission to acquire the 2,700-customer Indian Creek Valley Water Authority, which is based in Melcroft.
The PUC will conduct a telephonic hearing at 1 p.m. Friday, followed by two in-person hearings at 1 and 6 p.m. Monday at the Saltlick Township Municipal Building, 147 Municipal Building Road. To participate in Friday’s phone hearing, call 888-702-8142 and enter passcode 14564277.
Pennsylvania American Water, based in Mechanicsburg, would add about 600 customers in Donegal Borough and parts of Donegal and Mt. Pleasant townships in Westmoreland County if the acquisition is approved. The Indian Creek Valley authority serves about 2,000 customers in Fayette County, spanning Bullskin, Saltlick, Springfield and Stewart townships, as well as Connellsville and Ohiopyle.
Lauren Camarda, a spokeswoman for Pennsylvania American Water, said the company will bring the scale and expertise necessary to support safe, reliable service and long-term sustainability for Indian Creek Valley customers.
The larger utility has a track record of making critical infrastructure upgrades and operating within increasingly complex regulatory environments, Camarda said.
Spokespersons for the PUC and the Indian Creek Valley Water Authority could not be reached for comment.
Camarda noted communities of all sizes face growing pressure to comply with stringent regulatory requirements while managing aging infrastructure. In evaluating potential sales, she said decisions ultimately are made by local communities based on the long-term interests of their residents.
Under the sales agreement reached in May 2025, Pennsylvania American Water agreed to invest $9 million into the Indian Creek Valley system during the first five years of ownership. The company said it would adopt Indian Creek Valley’s existing base water rates until any new rates are approved by the PUC.
The company also committed to offering jobs to all Indian Creek Valley employees.
The $32.8 million purchase price includes paying off Indian Creek Valley’s debt of about $2.2 million, according to the agreement.