The purchase adds approximately 6,200 wastewater customers to the Southern Illinois service area
Illinois American Water President Bruce Hauk today announced the Company’s acquisition of the Village of Godfrey wastewater system. The purchase adds approximately 6,200 wastewater customers to the Southern Illinois service area. The system serves customers in Godfrey and nearby communities of Brighton and Fosterburg.
The Village of Godfrey voted in favor of the sale in October 2018. The Illinois Commerce Commission (ICC) approved the sale for $13.55 million on Oct. 2, 2019. The sale was completed today.
“We are excited to expand our services in the River Bend area where we’ve provided quality, reliable water service for over 140 years. Our team of wastewater experts are ready to serve our new customers and they are looking forward to making critical improvements to ensure reliable service for public health,” said Hauk.
Village of Godfrey Mayor Mike McCormick said the sale of the wastewater system to Illinois American Water will “serve residents well today and in the future.” He went on to say, “Illinois American Water will not only make the EPA mandated improvements to bring the system up to compliance, but their team of experts will ensure reliable service for years to come. This partnership also provides significant net proceeds to help fund other village needs and priorities. We welcome this expanded partnership with Illinois American Water in our community.”
In addition to completing requirements under the Amended Consent Order, Illinois American Water expects to invest on average about $2 million per year for routine capital improvements for the first 10 years of ownership.
Karen Cooper, senior manager for Illinois American Water’s Southern Division, said, “Many communities are looking for new and innovative ways to deal with challenges they’re facing while controlling expenses. There’s nothing more important to our team than ensuring our customers receive the best service possible at a good value. This partnership is a great solution for residents.”
New customers will 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 Godfrey wastewater 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.
Source: Company Press Release