American Water completes acquisitions in three states

American Water, the largest private supplier of water services in North America, announced that its Pennsylvania, Illinois and Missouri subsidiaries recently completed utility purchases, adding three local communities to the water company's system...

Sep 3rd, 2004

VOORHEES, NJ, Sept. 2, 2004 (BUSINESS WIRE) -- American Water, the largest private supplier of water services in North America, announced that its Pennsylvania, Illinois and Missouri subsidiaries recently completed utility purchases, adding three local communities to the water company's system.

"These three opportunities are part of our planned and ongoing process to grow American Water and focus on delivering high quality water services to households and businesses across the country," said Jeremy Pelczer, president and CEO of American Water. "We are delighted with these purchases and look forward to serving our new customers."

Pennsylvania American Water has purchased the water assets of Sligo Borough Authority for $430,000. As a result of the acquisition, Pennsylvania American Water will serve about 1,354 additional customers in the Sligo Borough and Piney Township (Clarion County). Pennsylvania American Water, the largest regulated water utility in the state, now serves more than two million people in 368 Pennsylvania communities.

"Hundreds of customers will now have access to reliable, high quality water that not only enhances the quality of life for citizens when considering their daily tap water needs, but also supports greater economic development and commerce," said Robert M. Ross, managing director for the Southeast Region of American Water that includes Pennsylvania.

The value of what happens when local governments partner with American Water is not lost on Sligo Mayor Mark E. Rummel.

"The residents were desperately looking forward to having good drinking water," said Rummel. "We have been troubled for years with inadequate, sub-par water. It will be a treat to have a good drink of tap water or to be able to do laundry without it getting stained."

On Aug. 27, Illinois American Water announced the acquisition of the Saunemin water system for $310,000. This water system currently serves 647 residents and will become part of the Illinois American Water system that currently provides water and/or wastewater services to more than one million people in 125 Illinois communities. Illinois American Water is the largest water utility in the state.

"We have worked closely with this small community for two years while operating their water system, and the acquisition is something that will benefit the village and also allow these residents to have the benefit of trusted water service from Illinois American Water," said Terry Gloriod, managing director of the Central Region of American Water that includes Illinois. "Customers are the winners. They get the expertise and economies of scale of American Water delivered locally to neighborhoods in smaller communities."

Saunemin Mayor Mike Stoecklin told the local newspaper that "the acquisition is a step forward for our city. With all of the water quality regulations and challenges that water suppliers today must deal with, this sale is the best long-term, permanent and reliable solution to address Saunemin's water supply needs."

On Aug. 25, Missouri American Water acquired the assets of the Warren County Water and Sewer Co. for $305,000 from a private company. The acquisition represents a significant commitment by Missouri American Water to 1,365 customers in Warren County eager for improved water service.

Warren County's wastewater system, in particular, needs the water professionals of Missouri American Water and American Water to address serious operational and environmental issues that will be addressed over time.

"We know it is going to take some work, but it was the right thing to do," said Cindy Hebenstreit, director of environmental compliance for the Central Region. "Even with the change, it's going to take time, and we are confident our company can bring the system back into compliance. That's what the people of Warren County deserve."

About Illinois American Water
Illinois American Water services about 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 Missouri American Water
Missouri American Water provides reliable, quality service to more than 100 communities throughout the state. Missouri American Water, with the support of American Water, has the technical support of a global network and the local knowledge to provide the highest quality water with personal service.

About Pennsylvania American Water
Pennsylvania American Water, a subsidiary of American Water, provides reliable, quality water and wastewater service to over 2 million people in the Commonwealth. The company owns and operates 38 water treatment facilities, three wastewater facilities and about 8,900 miles of pipeline to serve customers in over 368 communities in 35 counties.

About American Water, Thames Water, and RWE
With a history of more than 100 years, American Water provides high quality water, wastewater and other related services. As part of RWE Thames Water, American Water serves 18 million customers in more than 1,800 communities in 29 states, three Canadian provinces and Puerto Rico. The company includes a Center of Excellence in Innovation and Technology that leads water research for both American Water and RWE Thames Water. RWE Thames Water is the water division of RWE, the third largest water and wastewater services company in the world. It serves almost 70 million people in more than 20 countries across the globe. The company website is at www.amwater.com

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