Illinois American Water Acquires City of Mt. Pulaski Water and Wastewater Systems

Rhea-AI Summary

Illinois American Water has successfully acquired the City of Mt. Pulaski's water and wastewater systems for $5.25 million, recently approved by the Illinois Commerce Commission. This acquisition adds approximately 834 water and 800 wastewater customers to Illinois American Water's service area. The company plans to invest around $13.8 million over five years in system upgrades, including replacing infrastructure and enhancing service resilience. The local government anticipates improved water quality and the ability to focus on other priorities.

Positive

• Acquisition enhances customer base by approximately 1,634 new customers.
• Strategic investment of $13.8 million to upgrade infrastructure over five years.
• Expected improvements in water quality and service reliability.

Negative

• None.

MT. PULASKI, Ill.--(BUSINESS WIRE)-- Illinois American Water President Justin Ladner announced today the Company’s acquisition of the City of Mt. Pulaski water and wastewater systems. The purchase adds approximately 834 water and 800 wastewater customers to the company’s western Illinois service area.

The City of Mt. Pulaski voted in favor of the sale in March 2021. The Illinois Commerce Commission (ICC) recently approved the sale for $5.25 million. The sale was completed today.

“Our team is excited and ready to serve the City of Mt. Pulaski as we expand our footprint in Western Illinois,” said Ladner. “We have a long history of providing high-quality, reliable service to our customers and we look forward to playing a vital role in Mt. Pulaski.”

According to City of Mt. Pulaski Mayor Matt Bobell, the sale of the water and wastewater systems to Illinois American Water “will allow the city to focus on other priorities.” He continued, “Not only will residents have better quality water service from a company that has a focus on water quality, but the city will benefit from capital investments the city would not have been able to make.”

Illinois American Water plans to invest approximately $13.8 million in the first five years of ownership to upgrade the City of Mt. Pulaski water and wastewater systems. Work will include replacing water meters, water main, sewer main, manholes and lateral main connections. Generators will be installed for increased resiliency and continued service in the event of a power outage. Upgrades to the water treatment and wastewater treatment plants will support safe, reliable service. Safety and security upgrades will be completed to implement automation and improve operational efficiency.

Nathan Pennisi, operations superintendent for Illinois American Water’s Lincoln District, said, “We are thrilled to serve Mt. Pulaski. We had the opportunity to partner and support the local fire department this year through our Firefighter Grant program. We look forward to continuing our involvement in the community.”

New customers will receive an Illinois American Water welcome packet in the mail. This packet includes information about online account management, billing and more. To learn more about Illinois American Water and hear from communities the company has partnered with, visit Partnering with Us under About Us at www.illinoisamwater.com.

About Illinois American Water - Illinois American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.3 million people. American Water also operates a customer service center in Alton and a quality control and research laboratory in Belleville. With a history dating back to 1886, American Water (NYSE:AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,500 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 25 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

ILLINOIS AMERICAN WATER RANKED HIGHEST IN CUSTOMER SATISFACTION
WITH LARGE WATER UTILITIES IN THE MIDWEST FOR TWO YEARS IN A ROW.
For J.D. Power 2021 award information, visit jdpower.com/awards.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211217005647/en/

Media Contact: Karen Cotton, Sr. Manager External Communications, 309.566-4126 or karen.cotton@amwater.com

Source: Illinois American Water

FAQ

What is the value of the Illinois American Water acquisition of Mt. Pulaski?

The acquisition was valued at $5.25 million.

How many customers will Illinois American Water gain from the Mt. Pulaski acquisition?

Illinois American Water will gain approximately 834 water and 800 wastewater customers.

What are the planned investments for the Mt. Pulaski water systems?

Illinois American Water plans to invest about $13.8 million in upgrades over the next five years.

When did the City of Mt. Pulaski vote in favor of the sale?

The City of Mt. Pulaski voted in favor of the sale in March 2021.

What benefits does the City of Mt. Pulaski expect from selling its water systems?

The city expects better water quality services and the ability to focus on other priorities.