Illinois American Water Acquires Dana/Long Point/Reading/Ancona Public Water District Water System
January 26 2016 - 4:14PM
Business Wire
Acquisition will add about 150 new direct
customers in Streator District
Illinois American Water President Bruce Hauk today announced the
Company’s acquisition of the Dana/Long Point/Reading/Ancona Public
Water District (Water District) water system. The purchase of the
system adds approximately 150 customers to the Company’s customer
base in the Streator District and serves a population of nearly 300
residents.
Illinois American Water is familiar with the Water District
water system, and vice versa. Since 2009, the Water District
continued to own its water distribution system while Illinois
American Water operated and maintained the system. With the
dissolution of the Water District in April 2015, the Water District
chose to sell the water system to Illinois American Water.
"We have a strong legacy and presence in this area and nearby
Streator where we’ve been providing water service for over 125
years,” said Bruce Hauk, president of Illinois American Water.
“With this acquisition, we will expand our existing footprint and
help ensure local residents have access to a long-term, reliable
water supply for years to come.”
Former Water District Board President Ron Guest said, “We are
pleased residents will continue to have excellent water service
from Illinois American Water and also have access to all of the
benefits their customers enjoy. Residents are assured of not only a
reliable water supply, but one of high quality.”
The appraisal process used for the system was conducted under
the supervision of the Illinois Commerce Commission (ICC) and
established as part of the Illinois Water Systems Viability Act.
According to Hauk, this new law gives communities an alternative to
value their water and/or wastewater system when considering being
acquired by an investor-owned water utility. He said, “Previous law
only allowed the investor-owned water or sewer utility to pay the
original cost minus depreciation to acquire a small system, public
or private. Because of this, systems were deprived of receiving
adequate value for their system.”
The acquisition of the Water District water system for $1.075
million was approved by the ICC on Dec. 16, 2015. The sale was
closed today, Jan. 26, 2016, by Illinois American Water and the
Water District. Customers will receive an Illinois American Water
welcome packet in the mail.
Under Illinois American Water’s ownership, Water District
customers will experience a decrease in their water bill due to no
longer being required to reimburse the Water District for the local
water system infrastructure. This will result in an approximate
decrease of about $45 a month per customer. The typical residential
customer uses between 4,500 and 6,000 gallons of water per month.
Under Illinois American Water's rate structure, customers using
about 5,000 a month will pay a little over $44.00 a month for water
service.
The Water District will be incorporated into the company’s
Streator District service area and join Illinois American Water’s
other systems as a regulated utility under the jurisdiction of the
ICC. Customers with questions may contact the local operations
office at 815-672-4557.
About Illinois American Water
Illinois American Water, a wholly owned 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 1.2 million people. American
Water also operates a customer service center in Alton and a
quality control and research laboratory in Belleville.
Founded in 1886, American Water is the largest and most
geographically diverse publicly traded U.S. water and wastewater
utility company. With headquarters in Voorhees, N.J., the company
employs 6,800 dedicated professionals who provide regulated and
market-based drinking water, wastewater and other related services
to an estimated 15 million people in 47 states and Ontario, Canada.
More information can be found at www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160126006666/en/
Illinois American WaterKaren Cotton,
309-566-4126karen.cotton@amwater.com
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