Benzinga | Oct 6, 2020 03:58PM EDT

American Water Reports Its Illinois Subsidiary Buys City Of Jerseyville Water, Wastewater Systems

Illinois American Water President Justin Ladner today announced the Company's acquisition of the City of Jerseyville water and wastewater systems. The purchase adds approximately 4,100 water and 3,950 wastewater customers to the company's southern Illinois service area.

The City of Jerseyville voted in favor of the sale in December 2019. In August 2020, Illinois American Water began operating the Jerseyville water and wastewater systems on a contract basis until the close of the sale. The Illinois Commerce Commission (ICC) recently approved the sale for $43.25 million. The sale was completed today.

"Our team is proud to play a vital role in the City of Jerseyville," said Ladner. "We've committed to significant investment in the local water and wastewater infrastructure, as well as the construction of a local distribution center. We want to be a key part of the community and its growth."

According to City of Jerseyville Mayor William Russell the sale of the water and wastewater systems to Illinois American Water "allows the City to pay off debt and focus on other priorities." He went on to say, "The City will also benefit from a local operations center which will support customer service and tax revenue. Additional proceeds from the sale will support long-term infrastructure improvements and our community's future. This is an exciting time for Jerseyville."

Illinois American Water plans to invest $15 million in the first five years of ownership to upgrade the City of Jerseyville water and wastewater systems. Work will include a new operations center and elevated water tank as well as upgrades to the water treatment plant, wastewater treatment plant and lift stations. Water and sewer mains will also be replaced, and automation will be implemented to improve operational efficiency.

Karen Cooper, Director of Operations for Illinois American Water, said, "We are excited to partner with the City of Jerseyville and to support the community's success. We appreciate the City's trust and confidence in our team."

Customers will receive an Illinois American Water welcome packet in the mail. This packet includes information about online account management, billing and more.

To learn more about Illinois American Water and hear testimonials from communities the company has partnered with, please visit the Doing Business with Us page under About Us at www.illinoisamwater.com.