Illinois American Water Acquires City of Farmington Water System
April 05 2018 - 3:42PM
Business Wire
Acquisition will add approximately 1,125 new
customers in Peoria Service Area
Illinois American Water President Bruce Hauk today announced the
Company’s acquisition of the City of Farmington’s water system. The
purchase of the system adds approximately 1,125 new customers to
the Company’s customer base in the Peoria District and serves a
population of about 2,500 residents.
The Farmington City Council voted in favor of the sale in March
2017 and the Illinois Commerce Commission (ICC) approved the sale
for $3.75 million on March 21, 2018. Today, Illinois American Water
acquired the water system.
“We look forward to investing in the City of Farmington and
ensuring quality water service to our new customers,” said
Hauk.
City of Farmington Mayor Kent Kowal also supports the
acquisition. He said, “We welcome Illinois American Water and look
forward to their team helping us meet our water service needs.
Their knowledge and ability to upgrade our aging water system is
critical to our community’s economic future.”
Illinois American Water will invest $5 million in the first five
years of ownership. This investment will include a hydraulic study
to be completed in 2018 with a focus on improving water pressure
and fire flow. Investment will also include GIS updates and meter
exchanges. In coming years, Illinois American Water will focus on
water main replacements and installations to loop water mains.
Roger Goodson, sr. manager of field operations and production
for the Peoria District, said, “We are excited to become a member
of this vibrant community, not only as the water service provider,
but as a good neighbor.”
New customers will soon receive an Illinois American Water
welcome packet in the mail. This packet includes information about
online account management, billing and more.
The appraisal process used for the Farmington water system was
conducted under the supervision of the ICC and established as part
of the Illinois Water Systems Viability Act. According to Hauk,
this law gives communities an alternative to value their water
and/or wastewater system when considering being acquired by an
investor-owned water utility. He said, “Previous law only allowed
the investor-owned water or sewer utility to pay the original cost
minus depreciation to acquire a small system, public or private.
Because of this, systems were deprived of receiving adequate value
for their system.”
The City of Farmington will be incorporated into the company’s
Peoria District, which currently serves residents in Peoria, West
Peoria, Bartonville, Bellevue, Rome, Mapleton and parts of several
surrounding townships. Dunlap, Hanna City and the Timber Logan
Water District are sale for resale (wholesale) customers.
About Illinois American Water - Illinois American Water,
a subsidiary of American Water (NYSE: AWK), is the largest
investor-owned water utility in the state, providing high-quality
and reliable water and/or wastewater services to approximately 1.3
million people. American Water also operates a customer service
center in Alton and a quality control and research laboratory in
Belleville. With a history dating back to 1886, American Water is
the largest and most geographically diverse U.S. publicly traded
water and wastewater utility company. The company employs more than
6,900 dedicated professionals who provide regulated and
market-based drinking water, wastewater and other related services
to an estimated 15 million people in 46 states and Ontario, Canada.
American Water provides safe, clean, affordable and reliable water
services to our customers to make sure we keep their lives flowing.
For more information, visit amwater.com and follow American Water
on Twitter, Facebook and LinkedIn.
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Illinois American WaterKaren Cotton, 309-566-4126External
Affairs Manager
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