Acquisition Adds 2,300 New Customers; Company
Welcomes Six Salem Employees
New Jersey American Water today completed its acquisition of the
water and wastewater systems of the City of Salem, N.J. for $18
million. These former municipally owned systems serve more than
2,300 water and 2,300 wastewater customers. On May 22, 2024, the
New Jersey Board of Public Utilities (NJ BPU) approved the
municipal consent allowing New Jersey American Water to provide
service to Salem City customers as of the closing of the
transaction.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240625426402/en/
Photo Caption: New Jersey American
Water’s new Salem Operations Team celebrates the closing of the
acquisition. Left to right, back row: Senior Superintendent Mike
Gonserkevis, who joined the company from another municipal utility,
Senior Supervisor of Operations Jared Bacon, Sewer Operator
Mechanic Harron Jefferies and Ivan Porter. Left to right, front
row: Operations Specialist Pam Rushing, who transferred from the
company’s Southwest Production, Sewer Operator Mechanic William
“Curt” Hunter II, Mechanic Juan Stevenson, and Sewer Operator
Mechanic Cameron Cagle. Mr. Bacon and the five mechanics join the
company from Salem City’s former water and wastewater utility as
part of the acquisition. (Photo: Business Wire)
“We are honored and grateful to the residents and elected
officials of Salem City, who are entrusting us with the ownership,
improvement and operation of their water and wastewater systems,
beginning today. We are ready to start delivering on our commitment
to making the necessary investments in these systems to help ensure
clean, safe, reliable and affordable service for all residents,”
said Mark McDonough, president of New Jersey American Water. “We
are also excited to have six Salem City utility employees become
New Jersey American Water employees today, joining our South
Operations team and Water Workers Local 99.”
The agreement to purchase the systems follows a voter referendum
that took place on November 7, 2023, which passed with over 60
percent of the voters approving the sale of the systems to New
Jersey American Water. As part of the agreement, New Jersey
American Water committed to invest over $50 million in improvements
in the first 10 years. These investments include a robust capital
improvement plan, including critical system upgrades,
implementation of PFNA treatment and repairing the City’s aging
water and wastewater infrastructure.
“Selling the systems to New Jersey American Water is the right
decision for our community because it allows the City’s water and
wastewater utilities to be managed by a professional company whose
sole purpose is to focus on making appropriate, efficient
investments and keeping these critical services safe, reliable, and
affordable for our residents,” said Salem City Mayor Jody Veler.
“The sale will also eliminate $11 million in utility debt and pay
off a portion of the municipal debt, as well as enable us to put
over $1 million back into the City budget annually.”
Residents will receive additional information in the mail from
New Jersey American Water within the next 3-7 days, and the
information is also available now on a new, dedicated webpage on
the company’s website at www.newjerseyamwater.com, under Customer
Service and Billing, select Salem City.
Additionally, the company will be hosting a community open house
on Saturday, July 13 from 12 p.m. to 3 p.m. at the Amy “Hetty”
Reckless Center, 116 West Broadway, Salem, NJ. Employees will be
there to provide information and answer questions about
infrastructure investments, water quality, conservation and other
topics, as well as assist customers with enrolling in the company’s
MyWater online customer portal and H2O Help to Others bill-paying
assistance program. More information on bill-paying assistance
program eligibility requirements is available on the website at
www.newjerseyamwater.com, under Customer Service & Billing,
Customer Assistance Programs.
This is New Jersey American Water’s sixth acquisition in the
last six years. In June 2023, New Jersey American Water completed
the acquisition of Egg Harbor City’s water and wastewater system
via the State’s Water Infrastructure Protection Act, adding more
than 1,500 water and 1,500 wastewater customers. The company also
completed four wastewater system acquisitions within the company’s
water footprint, adding a total of more than 11,300 new wastewater
customers. The company acquired the Somerville wastewater system
with 3,800 customers in 2023; the Bound Brook wastewater system
with 2,800 customers in 2022; the Long Hill Township wastewater
system with 2,900 customers in 2020, and the Mount Ephraim
wastewater system with 1,800 customers in 2019.
Additionally, New Jersey American Water signed an agreement
earlier this year for the purchase of the Manville wastewater
system with 3,700 customers, which was approved by voter referendum
in November 2023. The company anticipates completing this
acquisition in the second half of 2024, pending approval from the
NJ BPU.
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 New Jersey American Water
New Jersey American Water, a subsidiary of American Water, is
the largest regulated water utility in the state, providing
high-quality and reliable water and/or wastewater services to
approximately 2.9 million people. For more information, visit
www.newjerseyamwater.com and follow New Jersey American Water on
LinkedIn, Facebook, X, and Instagram.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240625426402/en/
Media Contact: Denise Venuti Free Senior Director of
Communications and External Affairs New Jersey American Water
denise.free@amwater.com
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