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West Virginia American Water Signs Agreement to Purchase Jefferson Utilities for $30 Million
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
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Rhea-AI Summary
West Virginia American Water, a subsidiary of American Water, has signed a $30 million agreement to acquire the water and wastewater assets of Jefferson Utilities and related services. This acquisition will enhance service to nearly 4,000 customers in Jefferson, Berkeley, and Morgan counties. The deal is pending approval from the Public Service Commission of West Virginia and is expected to close by the end of 2022. Jefferson Utilities’ customers will transition to rates set by West Virginia American Water, ensuring continued service quality and local customer support.
Positive
Acquisition of Jefferson Utilities' assets enhances service to nearly 4,000 customers.
Transaction valued at $30 million indicates strong growth strategy.
Expected to close by end of 2022, facilitating prompt service improvements.
Negative
None.
CHARLESTON, W.Va.--(BUSINESS WIRE)--
West Virginia American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has signed an agreement with Jefferson Utilities to purchase the water and wastewater system assets of Jefferson Utilities, Inc., Valley Water and Sewer Services, Shenandoah Junction Public Sewer and East Jefferson Sewer Services for $30 million. The combined systems serve 3,978 customer connections in Jefferson, Berkeley and Morgan counties.
“West Virginia American Water looks forward to becoming the water and wastewater service provider for such a vibrant and growing part of the Eastern Panhandle,” said West Virginia American Water President Robert Burton. “We are committed to continuing the high level of service provided by these water and wastewater utilities while being an excellent community partner and delivering on our infrastructure investment, technical expertise and decades of water and wastewater experience. Additionally, we look forward to taking an active role in the growth of the Eastern Panhandle and helping the communities we’ll serve as they continue to thrive.”
The agreement, which will be filed with the Public Service Commission of West Virginia (PSC) for their review and approval, will transfer Jefferson Utilities’ assets and customer base to West Virginia American Water upon closing. West Virginia American Water and Jefferson Utilities expect to close the transaction by the end of 2022. At the time of closing, Jefferson Utilities customers can expect to assume West Virginia American Water’s rates which are set by the PSC, and any future rate changes would be reviewed and approved by the PSC.
The purchase agreement between West Virginia American Water and Jefferson Utilities was executed under SB 551, which allows sellers to value their water and wastewater systems at a price based on the fair value of the assets. Enacted in 2020, this statute gives utility owners the opportunity to receive a purchase price that is more reflective of the current value of their system assets.
“All of our employees and I have worked diligently and tirelessly over the past 25 years to establish the Jefferson Utilities’ water system. We have accomplished a great deal and served our customers well. As I approach retirement, my succession goal is to see our work continued by a very capable utility company, West Virginia American Water. With this agreement, the future of the Eastern Panhandle is bright,” said Jefferson Utilities owner Lee Snyder. “This sale presents an incredible opportunity for our area and our customers. I look forward to all that West Virginia American Water will do for and within our communities.”
Jefferson Utilities customers can expect a seamless transition of their water and wastewater service. West Virginia American Water plans to acquire the utility’s treatment plants and operations facilities and offer employment to Jefferson Utilities employees. Additionally, local bill-pay and customer service options will remain available.
Finally, West Virginia American Water looks forward to developing strong partnerships with elected officials, community collaborators and external stakeholders while being an impactful corporate citizen to the communities of the Eastern Panhandle.
About West Virginia American Water
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 560,000 people.
About American Water
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 6,400 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.
