Iowa American Water announced that it has acquired the City of Blue Grass’s wastewater system for $2 million.
The newly-acquired wastewater utility is Iowa American Water’s first sewer system operation in the state. It will bring about 750 wastewater customers under the company’s service.
“Our team is excited to provide an additional service to our water customers in Blue Grass,” says Randy Moore, president of Iowa American Water. “Since 2017, we have had the privilege of partnering with Blue Grass to provide clean, safe, and reliable service to the community, sharing our expertise while making critical investments in aging systems. We look forward to continuing that commitment as the community’s new wastewater provider.”
The Iowa Utilities Board approved the acquisition on July 12, 2022.
Iowa American Water plans to invest approximately $4 million in the city’s wastewater system to address issues as well as upgrade safety and security systems. Ongoing capital investment plans have been developed to address compliance with permit requirements and improve operational efficiencies.
New sewer rates recently implemented by the City of Blue Grass will continue under Iowa American Water’s ownership. Customers pay a monthly fixed charge for sanitary sewer service of $39.48 for all meter sizes up to 2,500 gallons, and a variable charge of about 74 cents for each 100 gallons after the first 2,500 gallons. A typical monthly sewer bill for a Blue Grass customer using 4,000 gallons is $50.60.
Since Iowa American Water acquired the Blue Grass drinking water system in 2017, the company has invested more than $3 million to upgrade water service infrastructure including installation of a three-mile water transmission line that interconnected the Blue Grass water system with Iowa American Water’s system to increase water pressure and improve water quality.
“We are happy to expand our expertise and services to wastewater in Blue Grass,” Moore added. We are looking forward to continuing to support the community and partnering with the city and its residents. We appreciate the City’s trust and confidence in our team of water and wastewater professionals.”
