CHARLESTON, W.Va., Jan. 3, 2003 -- West Virginia-American officials Friday announced a settlement has been reached with Attorney General Darrell McGraw that clears the way for its new partnership with Thames Water.
"We are pleased with the agreement reached with Attorney General McGraw, and we thank McGraw and the Attorney General staff for their willingness to sit down and work this out," said Chris Jarrett," president, West Virginia-American Water Company. "Everyone is interested in protecting West Virginia's future. West Virginia-American has always worked for the betterment of West Virginia, as has the Attorney General, and we look forward to continuing to provide the best possible water service to the people of West Virginia."
The West Virginia Public Service Commission issued orders of October 23 and December 6 and must now approve this agreement. The agreement contains seven conditions beyond those in the PSC order.
"The new conditions clarify our commitments to the people of West Virginia," said Jarrett. "We embrace these conditions and believe they contribute to the betterment of water service in our state."
The agreement says that:
* TWUS, a holding company wholly owned by Thames Water, will hold the stock of American Water Works.
* West Virginia-American will pass along savings achieved in West Virginia from the sale of American to RWE/Thames Water to its customers as soon as possible.
* Thames and West Virginia-American will not use any international treaties to challenge the jurisdiction of the PSC.
* Thames and West Virginia-American agree that the water company does not own the water resources in West Virginia, that the company would support legislation that details the state's ownership of rivers. The company waives any right to assert that the company owns the state controlled water sources.
* The water company will not sell any water outside the state without PSC approval and will pay a 3% surcharge on gross revenues from future water sales outside the state.
* The water company will make annual reports to the PSC on all its water and wastewater enterprises.
* The water company will double its contribution to the Helping Hand Program from $25,000 to $50,000 a year.
"We look forward to this matter being behind us and we look forward to the future," said Jarrett. "We will continue to provide excellent water service and be a good corporate citizen in Charleston and around the state."
