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Virginia American Water Signs Agreement to Purchase Town of Cape Charles Water and Sewer Systems
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Rhea-AI Summary
Virginia American Water has signed an asset purchase agreement with the Town of Cape Charles, Virginia, to acquire its drinking water and wastewater assets for up to $15 million, subject to regulatory approvals. This acquisition, which serves approximately 2,300 customers, includes a commitment of over $10 million in system improvements over the next eight years. The deal aims to enhance drinking water quality and maintain stable rates for residents. The acquisition is anticipated to be completed in late 2023, pending approval from the Virginia State Corporation Commission.
Positive
Acquisition of Cape Charles water and wastewater assets for up to $15 million.
Commitment to invest over $10 million in system improvements over the next eight years.
Acquisition expected to enhance drinking water quality and system reliability.
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None.
Sale provides a long-term solution for water quality issues while keeping rates stable
ALEXANDRIA, Va.--(BUSINESS WIRE)--
Virginia American Water announced today it has signed a comprehensive asset purchase agreement for the drinking water and wastewater assets of the Town of Cape Charles, Virginia for up to a maximum of $15 million, pending appraised values and regulatory approvals. The combined systems serve 2,300 customers.
As part of the acquisition, Virginia American Water has committed to invest more than $10 million in critical system improvements over the next eight years. Improving drinking water quality is prioritized along with other projects to enhance system reliability and security.
“We are honored to have been chosen by the Town of Cape Charles to purchase and manage its water and sewer systems. Selling to Virginia American Water will allow the Town to leverage our expertise and decades of water and wastewater experience throughout the state and provide a long-term solution for the town’s water challenges, said Barry Suits, president of Virginia American Water. “Virginia American Water is committed to making the capital investments needed, while keeping rates stable. This acquisition, once approved by the Virginia State Corporation Commission, will allow us to provide the residents and businesses of Cape Charles with safe and reliable water service, as we have done for communities throughout Virginia for 170 years”.
“There are few things more important in a community than safe and dependable water and sewer service. The town has tried hard over the years to meet these needs but has sometimes struggled and found it hard to keep rates reasonable. So, we’ve spent over two years in due diligence trying to find the best way forward, and the Town Council has made the decision toentrust these critical functions to Virginia American Water. VAW’s track record, expertise, and resources will mean improved water quality, environmentally sound operations, and utility rates less than what the town could offer. I’m very excited to begin this new relationship and look forward to the benefits it will bring to Cape Charles,” said John Hozey, Cape Charles Town Manager.
Before completing the acquisition, Virginia American Water must obtain approval by the Virginia State Corporation Commission (SCC). The Town of Cape Charles and Virginia American Water anticipate completing the acquisition in late 2023 following SCC approval.
About Virginia American Water
Virginia 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 services to approximately 350,000 people. For more information, visit www.virginiaamwater.com and follow Virginia American Water on Twitter and Facebook.
About American Water
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 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 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 diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.
