New Illinois American Water Tank Completed in Sidney

Rhea-AI Summary

Illinois American Water has completed construction of a new $2.7 million water tank in Sidney, Champaign County. The new facility, featuring both Village of Sidney and Illinois American Water logos, holds 150,000 gallons of water, nearly triple the capacity of the original 55,000-gallon tank built in the 1940s.

Located on the village's west side on a 4-acre property purchased in April 2022, the new tank was constructed in late 2023 and became operational in December 2024. The original downtown water tank will be decommissioned and removed. The project, executed by Caldwell Tanks Inc. of Louisville with design services from The Farnsworth Group, was completed entirely by union workers.

Positive

• Investment of $2.7 million in infrastructure improvement
• Nearly tripled water storage capacity from 55,000 to 150,000 gallons
• Enhanced water system reliability and redundancy

Negative

• None.

Insights

Infrastructure Investment Analyst

The completion of Sidney's $2.7 million water tank marks a strategic infrastructure investment for American Water Works (AWK), showcasing the company's successful execution of its regulated utility growth strategy. The project demonstrates several key strengths in AWK's business model:

Infrastructure Modernization & Growth:

• The nearly 200% increase in storage capacity (from 55,000 to 150,000 gallons) positions the system for future community growth while improving reliability
• Replacing 80-year-old infrastructure reduces maintenance costs and operational risks
• The project's completion within 12 months of construction start indicates efficient capital deployment

Acquisition Integration Success:

• The rapid implementation of major infrastructure improvements following the 2020 Sidney system acquisition validates AWK's municipal acquisition strategy
• This exemplifies how AWK can upgrade acquired systems to modern standards, supporting its growth-through-acquisition model

Financial Implications:

• Infrastructure investments in regulated territories typically qualify for rate base additions, enabling return on invested capital through regulatory rate recovery
• The use of union labor and local engineering firms (Farnsworth Group) demonstrates stakeholder management that can facilitate regulatory approvals
• Such investments support AWK's predictable earnings growth model while fulfilling essential public service obligations

New $2.7 million water tank will improve storage, reliability and redundancy of Sidney community’s water system

URBANA, Ill.--(BUSINESS WIRE)-- Construction of a new, highly visible water tank has been completed and is in service in the Village of Sidney in Champaign County. The new tank holds 150,000 gallons of water and includes the logos of the Village of Sidney and Illinois American Water.

The original water tank held 55,000 gallons of water and was built in the 1940s. It underwent major rehabilitation in the 1970s. Fifty years later, it was no longer meeting the needs of the Sidney community.

The new water tower is located on the village’s west side of town. In April 2022, Illinois American Water purchased the 4-acre property. Construction began in late 2023 and the new tank was placed into service in December 2024.

The old water tank, located downtown, is out of service and will be retired and removed, according to Brian Wiemers of Illinois American Water. “The new water tank can store nearly three times the amount of water compared to the original tank,” said Wiemers. “The new tower meets the needs today in Sidney and will meet the future needs of the village.”

Sidney is located about 13 miles southwest of Urbana.

Illinois American Water acquired the Sidney water system in April 2020.

Caldwell Tanks Inc. of Louisville, KY, was the main contractor of the project. The Farnsworth Group’s office in Champaign provided design services. All work on the project was completed by union employees.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Illinois American Water
Illinois American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.4 million people. American Water also operates a quality control and research laboratory in Belleville.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129920203/en/

NEWS MEDIA CONTACT

Anna Kubas

Senior Manager, External Communications

Illinois American Water

Anna.Kubas@amwater.com

Source: Illinois American Water

FAQ

What is the capacity of Illinois American Water's new tank in Sidney?

The new water tank in Sidney has a capacity of 150,000 gallons, nearly triple the 55,000-gallon capacity of the original tank.

How much did Illinois American Water invest in the new Sidney water tank?

Illinois American Water invested $2.7 million in the new water tank project in Sidney.

When was the new Illinois American Water tank in Sidney completed?

The new water tank was constructed in late 2023 and placed into service in December 2024.

What will happen to the old water tank in Sidney?

The old water tank, located downtown Sidney, will be retired and removed from service.

When did Illinois American Water acquire the Sidney water system?

Illinois American Water acquired the Sidney water system in April 2020.