Pekin, N.J., water customers better served by privately owned company, regulators say

Strengthening the case for continued private ownership of the water system in Pekin, the Illinois Commerce Commission (ICC) recently issued a ruling rejecting arguments of a local government seeking to take over a private water utility owned by American Water and ruled in favor of the water company.


VOORHEES, N.J., Jan. 23, 2004 -- Strengthening the case for continued private ownership of the water system in Pekin, the Illinois Commerce Commission (ICC) recently issued a ruling rejecting arguments of a local government seeking to take over a private water utility owned by American Water and ruled in favor of the water company.

The ICC ruled that it was not in the public interest for the City of Pekin to be allowed to condemn the water system.

"This ruling is consistent with our view that the private ownership of local water companies offers communities a viable opportunity to providing safe reliable water and excellent service in a cost efficient manner," said Terry Gloriod, president, Illinois American Water. "We invest millions each year in the infrastructure of our water companies to provide the reliable service that our customers depend on and to meet the latest standards by the Environmental Protection Agency (EPA).

"Illinois American Water is hopeful the City of Pekin will look forward to focusing on working together to continue to provide high quality, reliable water service to the citizens of Pekin," Gloriod said.

The ruling by the ICC is in response to a petition filed in May 2002 by the City of Pekin seeking authority from the Illinois Commerce Commission to pursue eminent domain proceedings against Illinois American.

The city sought authority to condemn assets of Illinois American's Pekin district in a takeover attempt of the privately owned utility, which has served Pekin for more than 20 years. The district includes the city of Pekin as well as parts of the adjoining townships of Groveland, Pekin, Cincinnati and Oak Grove.

About Illinois American Water

Illinois American services approximately 293,000 metered customers, or more than 1 million persons, in 125 Illinois communities. The company has been providing service in Illinois for more than 100 years.

About American Water, Thames Water, and RWE

Established over 100 years ago, American Water provides high quality water, wastewater, and other related services. As part of RWE Thames Water, American Water serves 20 million customers in 28 states, 4 Canadian provinces, Puerto Rico and Chile. Thames Water is the water division of international multi-utility RWE, which is the third largest water and wastewater services company in the world. It serves almost 70 million people in 46 countries across the globe. Additional information can be found on the Internet at www.amwater.com . American Water and RWE Thames Water, through its combined expertise, continue the tradition of providing customers with superior quality service while gaining access to new technologies, research and development, and global experience in service, customer satisfaction and security.

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