Iowa American Water, a subsidiary of American Water (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, announced the acquisition of the City of Blue Wastewater System Grass for $2 million, according to a press release.
On July 12, 2022, the Iowa Utilities Board approved the acquisition. The newly acquired wastewater utility, Iowa American Water’s first sewage system operation in the state, adds approximately 750 wastewater customers to the company’s Iowa Quad Cities service area, the release said. .
“Our team is excited to provide additional service to our water customers at Blue Grass,” said Randy Moore, president of Iowa American Water. “Since 2017, we have been privileged to partner with Blue Grass to provide clean, safe and reliable service to the community, sharing our expertise while making critical investments in aging systems. We look forward to continuing this commitment as the community’s newest wastewater provider.
According to Blue Grass Mayor Brad Schutte, “Selling the sewer system to Iowa American Water is in the best interest of the community because it will provide residents with industry experts focused on modernizing the sewer system. sanitation, just like Iowa American Water did with our community’s water system.”
“The city will benefit from capital investments that we could not have made, and Iowa American Water will bring the sewer system back into compliance with the Iowa Department of Natural Resources (IDNR) in a timely manner,” said Shutte.
Iowa American Water plans to invest about $4 million in the city’s sewer system to fix problems and upgrade safety and security systems, the statement said. Ongoing capital investment plans have been developed to ensure compliance with permit requirements and improve operational efficiencies.