West Virginia American Water announced today that it has completed its acquisition of the Town of Glasgow water system. This transaction follows past emergency aid from the company in the form of leak detection and system repairs for the distressed utility, which has historically experienced water loss of approximately 66 percent.
The Town of Glasgow, which serves approximately 300 customers along Rt. 60 in Kanawha County, has struggled to maintain adequate service to its customers in recent years. The town’s water system serves a community with declining population and industry, and substantial infrastructure upgrades are needed to restore reliable water service to the municipality.
West Virginia American Water has acquired the water system assets and established an interconnection between the company’s water lines in Kanawha County and the town’s water system. According to the joint agreement, the Town of Glasgow has determined that it is in the best interest of its customers to sell its distribution facilities to West Virginia American Water, and that customers will benefit by receiving more reliable water service as a result of improved operation and maintenance of the system and investments by the company.
"If not for the assistance of West Virginia American Water, the water system in Glasgow would have surely failed. I feel that we have had about 40 years of Band-Aids to the system and that method of doing things is over. It is time for sustained investment and West Virginia American Water is the best option," said Glasgow Mayor Donald Fannin.
Effective today, Town of Glasgow water customers will become customers of West Virginia American Water. The previous customer rate of $30.35 per 3,000 gallons will increase to $34.56 and continue to increase annually until December 31, 2023 when customers reach the company’s standard rates as set by the Public Service Commission. Certain low income customers may qualify for an automatic 20 percent discount through the company’s Special Reduced Rate program.
"Dozens of water and wastewater systems across our state are in crisis due to lack of investment and maintenance as well as population decline," said West Virginia American Water President Robert Burton. "Many small towns and public service districts are unable to meet the demands of operations and costs associated with maintaining an adequate water distribution system. We have been pleased to work with Mayor Donald Fannin to provide a viable, sustainable solution for the Town of Glasgow that will ensure safe, reliable water service at reasonable rates. We look forward to serving the people of Glasgow."
West Virginia 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 services to approximately 550,000 people. 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 7,100 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to more than 14 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. More information can be found at www.westvirginiaamwater.com.