Following the transaction, Boone-Raleigh PSD’s customers will become customers of West Virginia American Water, paying its standard rates as set by the PSC
West Virginia American Water has announced the completion of its acquisition of the Boone-Raleigh Public Service District (PSD) water distribution system.
The water services provider said that the Boone-Raleigh PSD, serving approximately 470 customers in Boone and Raleigh Counties including the towns of Sylvester and Whitesville, has faced a drop in customers and struggled to maintain required service in recent years.
The acqusition follows several months of emergency aid to the distressed PSD, which has historically recorded over 60% water loss and frequent water outages due to leaks.
West Virginia American Water president Robert Burton said: “We were very pleased to receive the Public Service Commission’s approval to acquire the Boone-Raleigh PSD water system. Customers throughout this system have been experiencing frequent water outages and unreliable service for quite some time.
“As we close this acquisition, West Virginia American Water will now take the necessary steps to provide these customers with the quality, reliable water service they need and deserve.”
Upgrades to PSD are subject to the West Virginia Department of Environmental Protection consent
The company said that the water system requires significant upgrades and infrastructure replacements, including the water treatment plant that has received multiple deficiencies from the West Virginia Department of Health and Human Resources.
In addition, the PSD was unable to provide sufficient investments into the water system without raising the customer rates. West Virginia American Water is expected to provide vital service for those customers at reasonable and affordable rates.
West Virginia American Water is planning to establish an interconnection between its existing water lines in Boone County and the PSD’s system.
PSD would continue to operate its water treatment plant and supply water that West Virginia American Water will distribute to customers, until the interconnection works are completed.
In addition, the company intends to update and improve the infrastructure across the system to ensure reliable water service.