Illinois American Water Acquires Concordia Water Cooperative’s Water Distribution System

Rhea-AI Summary

Illinois American Water has acquired the Concordia Water Cooperative's water distribution system for $1.7 million, adding around 150 customers in the Metro East area. This strategic move follows a vote by the cooperative in July 2019 and approval from the Illinois Commerce Commission. Customers can expect their bills to decrease by approximately $50.25 monthly due to the removal of infrastructure reimbursement costs. The company, which has over 145 years of service history, plans to enhance the water distribution system for improved reliability and customer satisfaction.

Positive

• Acquisition expands Illinois American Water's customer base by approximately 150.
• Customers will see a monthly bill decrease of about $50.25.
• Illinois American has a proven track record of service in the region.

Negative

• None.

Illinois American Water President Justin Ladner today announced the Company’s acquisition of the Concordia Water Cooperative water distribution system, located in an unincorporated area west of Belleville near Millstadt. The purchase adds approximately 150 water customers to the Metro East service area.

“We have a long history – over 145 years – of providing quality water service across Illinois, including on a wholesale basis to Concordia Water Cooperative since October 2011. We are proud of our track record and look forward to serving these customers directly and building on our relationship with them,” said Ladner.

The Concordia Water Cooperative voted in favor of the sale in July 2019. The Illinois Commerce Commission (ICC) approved the sale for $1.7 million. The sale was completed today.

Cooperative President Sherman Woy said, “customers will benefit from the sale.” He said, “We are familiar with Illinois American Water and praise their standards. Customers will continue to receive safe, reliable water service from a company that has served this region well for many years. In addition, customers will experience a significant decrease in rates as a result of the sale.”

Typical residential Concordia Water Cooperative customers are expected to see bills decrease by about $50.25 a month. This is based on monthly usage of 3,500 gallons and a 5/8-inch meter. The decrease is a result of customers no longer being required to reimburse the Water Cooperative for the installation of the community water system infrastructure which replaced residential wells.

Joe Ahlvin, senior manager of operations for Illinois American Water’s Southern Division, said, “We are excited to serve Concordia Water Cooperative customers directly. We are familiar with the community and their needs. We look forward to continuing our involvement and being a good neighbor.”

Ahlvin also said the company is committed to upgrading the water distribution system. Ongoing maintenance and improvements will support continued reliability and service to customers.

New customers will receive an Illinois American Water welcome packet in the mail. This packet will include information about online account management, billing and more. To learn more about Illinois American Water and hear testimonials from communities the company has partnered, please visit the Doing Business with Us page 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/or 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 is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.

Illinois American Water ranked #1 in Customer Satisfaction
with Large Water Utilities in the Midwest according to the J.D. Power 2020 Water Utility Residential Customer Satisfaction Study
For J.D. Power 2020 award information, visit jdpower.com/awards

View source version on businesswire.com: https://www.businesswire.com/news/home/20210211005938/en/

FAQ

What is the significance of Illinois American Water's acquisition of Concordia Water Cooperative?

The acquisition adds approximately 150 customers to Illinois American Water's service area and is expected to lower water bills for customers.

When was the acquisition of Concordia Water Cooperative approved?

The Illinois Commerce Commission approved the acquisition in July 2019.

What will be the impact on customer bills after the acquisition?

Typical residential customers will experience a decrease in monthly bills by around $50.25.

How long has Illinois American Water been providing services?

Illinois American Water has over 145 years of history in providing quality water services across Illinois.

What is the financial value of the acquisition?

The acquisition of the Concordia Water Cooperative's distribution system was completed for $1.7 million.