Virginia American Water Finalizes Acquisition of Town of Cape Charles Water and Wastewater Systems
April 24 2024 - 4:32PM
Business Wire
Virginia American Water announced today it has closed the
acquisition of the drinking water and wastewater system assets of
the Town of Cape Charles, Virginia for $15 million. This
acquisition brings approximately 1,400 water and wastewater
customers to Virginia American Water and is the second to be
completed by the company under the Fair Market Value Legislation
enacted by the Virginia General Assembly in 2020.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240424085131/en/
Back row (l to r): Adam Charney, Mayor,
Town of Cape Charles and Steve Bennett, Vice Mayor, Town of Cape
Charles. Front row (l to r): John Hozey, Town Manager, Town of Cape
Charles and Charlie Piekanski, Vice President of Operations,
Virginia American Water (Photo: Business Wire)
As part of the acquisition, Virginia American Water will invest
more than $10 million in future critical system improvements over
the next eight years. A comprehensive planning study will be
completed during the first year to identify and prioritize the
required capital investment projects to improve the systems and the
quality of the drinking water.
“We are delighted to welcome the residents of Cape Charles as
our newest customers. Thank you to Mayor Adam Charney, the Town
Council, and Town Manager John Hozey and his staff for their
support throughout the process. The customers who join us with this
acquisition will benefit from our company’s expertise in operating
drinking water and wastewater systems, including a stellar record
of water treatment, water quality testing and compliance. They will
receive the same high-quality service that our customers throughout
the state expect and deserve,” said Barry Suits, president of
Virginia American Water.
“Joining Virginia American Water was the right decision for Cape
Charles. This has been a lengthy process to allow the amount of due
diligence needed for a decision of this magnitude and for the
transparency and public input we committed to from the beginning.
As a partner, Virginia American Water brings the expertise needed
to properly operate both our water and wastewater systems, as well
as economies of scale that will benefit our customers that the Town
couldn’t have achieved on its own. We are also thrilled to see our
eight utility employees transition to become Virginia American
Water employees, keeping all that local knowledge and experience
here working for our residents,” said John Hozey, Cape Charles Town
Manager.
The Town of Cape Charles signed an agreement to sell its
drinking and wastewater systems to Virginia American Water in
January of 2023, based on the need to upgrade the system's
infrastructure and bring additional experience and expertise in
water management. Virginia American Water takes a proactive
approach to maintaining infrastructure and invested more than $53
million in water system improvements statewide in 2023 alone.
Virginia American Water will be sending information to customers
served by the Cape Charles Systems this week, including how to
enroll in MyWater, the company’s online customer portal, as well as
other customer service information and benefits. The company also
provides bill paying assistance programs, conservation tips and
more.
About American Water
American Water (NYSE: AWK) is the largest regulated water and
wastewater utility company in the United States. With a history
dating back to 1886, We Keep Life Flowing® by providing safe,
clean, reliable, and affordable drinking water and wastewater
services to more than 14 million people with regulated operations
in 14 states and on 18 military installations. American Water’s
6,500 talented professionals leverage their significant expertise
and the company’s national size and scale to achieve excellent
outcomes for the benefit of customers, employees, investors and
other stakeholders. For more information, visit amwater.com and
join American Water on LinkedIn, Facebook, X and Instagram.
About Virginia American Water
Virginia American Water, a subsidiary of American Water, is the
largest regulated water utility in the state, providing
high-quality and reliable water services to approximately 350,000
people. For more information, visit www.virginiaamwater.com and
follow Virginia American Water on X and Facebook.
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version on businesswire.com: https://www.businesswire.com/news/home/20240424085131/en/
Media Contact: Marybeth Leongini External Affairs Manager
571-344-0998 marybeth.leongini@amwater.com
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