CHARLESTON, WV–(BUSINESS WIRE)–West Virginia American Water, a subsidiary of American Water (NYSE: AWK), today announced 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 dynamic and growing portion of the Eastern Panhandle,” said West Virginia American Water President Robert Burton. “We are committed to maintaining the high level of service provided by these water and wastewater utilities while being an excellent community partner and realizing our infrastructure investments, technical expertise and decades of experience in matter of water and wastewater. Additionally, we look forward to playing an active role in the growth of the Eastern Panhandle and helping the communities we serve as they continue to thrive.
The agreement, which will be filed with the West Virginia Public Service Commission (PSC) for review and approval, will transfer the assets and customer base of Jefferson Utilities 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 closing, Jefferson Utilities customers can expect to pay West Virginia American Water rates that are set by the PSC , and any future rate changes would be reviewed and approved by the CPS.
The purchase agreement between West Virginia American Water and Jefferson Utilities was signed under SB 551, which allows sellers to price their water and wastewater systems at a price based on the fair value of assets . Passed in 2020, this law gives utility owners the option of receiving a purchase price that better reflects the current value of their system’s assets.
“All of our employees and I have worked diligently and tirelessly over the past 25 years to establish 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 Lee Snyder, owner of Jefferson Utilities. “This sale represents an incredible opportunity for our region 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 processing plants and operating facilities and provide employment for Jefferson Utilities employees. Additionally, local bill payment 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 influential corporate citizen for communities in 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 reliable, high-quality water service to approximately 560,000 people.
About US Water
With a history dating back to 1886, American Water is America’s largest and most geographically diverse water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated, type-regulated drinking water and sanitation 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 them get on with their lives. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.