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West Virginia American Water has successfully acquired the water distribution system of Cedar Grove, which previously served about 395 customers. This acquisition, necessitated by Cedar Grove's inability to maintain its infrastructure, is expected to enhance service reliability through improved operations and necessary investments. Following the acquisition, Cedar Grove residents will transition to West Virginia American Water's service, with average bills set at $43.46 for 3,000 gallons. Rates will gradually align with standard rates set by the Public Service Commission of West Virginia.
Positive
Acquisition of Cedar Grove's water system enhances service reliability for approximately 395 customers.
Planned investments will improve water quality and reduce leakage.
Negative
Cedar Grove's water rates will increase annually until reaching standard rates, which may burden customers.
CHARLESTON, W. Va.--(BUSINESS WIRE)--
West Virginia American Water announced today that it has completed its acquisition of the Town of Cedar Grove’s water distribution system. The company now owns and operates the system as part of its Kanawha Valley system.
The Town of Cedar Grove, which served approximately 395 customers along Rt. 60 in Kanawha County, has struggled to maintain adequate service to its customers in recent years. Additionally, the town no longer had the means to continue maintenance and infrastructure upgrades on its water treatment plant and distribution system.
“We are very pleased to receive the Public Service Commission’s approval to acquire the Town of Cedar Grove’s water system,” said Robert Burton, president of West Virginia American Water. “We look forward to serving the town’s residents, and we thank Mayor James Hudnall for the many months of planning and discussions to get us to this point. West Virginia American Water will now take the necessary steps to provide Cedar Grove residents with quality, reliable water service for many years to come.”
Earlier this year, the Town of Cedar Grove determined that it was in the best interest of its customers to sell its distribution system to West Virginia American Water. Town officials noted that customers would benefit by receiving more reliable water service as a result of improved operation and maintenance of the system and investments by the company. The company recently acquired water distribution systems in the neighboring towns of Glasgow and East Bank over similar concerns.
West Virginia American Water has established an interconnection between the company’s water lines in Kanawha County and the town’s water system and will continue to make needed investments in the town’s water distribution system to reduce leakage, improve water quality, and provide more reliable service.
Effective today, Town of Cedar Grove water customers will become customers of West Virginia American Water. The average residential customer in Cedar Grove using 3,000 gallons will receive a water bill of $43.46 per month. Cedar Grove rates will increase annually until October 6, 2023 when customers reach the company’s standard rates as set by the Public Service Commission of West Virginia. Qualified customers may be eligible for a discounted rate through the company’s Special Reduced Rate program. Customers in need of financial assistance are encouraged to learn more on the company’s website or call customer service at 1-800-685-8660.
West 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 545,000 people. 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 7,000 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 help make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.
What is the significance of West Virginia American Water's acquisition of Cedar Grove's water system?
The acquisition allows West Virginia American Water to provide improved water service to Cedar Grove residents who previously faced inadequate service.
How many customers will West Virginia American Water serve after acquiring Cedar Grove's water system?
West Virginia American Water will serve approximately 395 customers from the Cedar Grove area.
What are the expected impacts of the acquisition on Cedar Grove's water service?
Residents can expect enhanced reliability and quality of water service due to operational improvements and infrastructure investments.
When will Cedar Grove customers see a change in their water rates after the acquisition?
Cedar Grove water rates will increase annually until they reach standard rates set by the Public Service Commission by October 6, 2023.
