ALEXANDRIA, Va. — In a significant development for water management infrastructure, Virginia American Water has successfully completed the acquisition of the drinking water and wastewater system assets of the Town of Cape Charles, Virginia, for a total sum of $15 million.
This acquisition, announced today by Virginia American Water, marks the second completed transaction under the Fair Market Value Legislation, which was enacted by the Virginia General Assembly in 2020. With this acquisition, approximately 1,400 water and wastewater customers from Cape Charles are now under the umbrella of Virginia American Water.
As part of the acquisition agreement, Virginia American Water has committed to investing over $10 million in critical system improvements over the next eight years. The initial phase will involve a comprehensive planning study to identify and prioritize essential capital investment projects aimed at enhancing the systems and the quality of drinking water provided to residents.
Barry Suits, President of Virginia American Water, expressed his enthusiasm, stating, “We are delighted to welcome the residents of Cape Charles as our newest customers. This acquisition reflects our company’s dedication to providing high-quality water and wastewater services across the state. We are committed to upholding our stellar record in water treatment, quality testing, and compliance, ensuring that our new customers receive the same level of excellence that our existing customers have come to expect.”
The sentiment was echoed by Cape Charles Town Manager John Hozey, who emphasized the benefits of partnering with Virginia American Water. “Joining Virginia American Water was the right decision for Cape Charles,” Hozey said. “This acquisition brings the expertise needed to operate our water and wastewater systems effectively, as well as economies of scale that will benefit our customers. We are pleased to see our utility employees transition to become Virginia American Water employees, ensuring that local knowledge and experience remain within our community.”
The decision to sell the drinking and wastewater systems to Virginia American Water was based on the need to upgrade infrastructure and leverage the company’s expertise in water management. Virginia American Water has a track record of proactive infrastructure maintenance, having invested over $53 million in water system improvements statewide in 2023 alone.
In response to the acquisition, Virginia American Water will be reaching out to customers served by the Cape Charles Systems this week, providing information on enrollment in MyWater, the company’s online customer portal, as well as other customer service benefits and assistance programs.
For more information about Virginia American Water, visit their website at https://www.amwater.com/.
And of course the windfall the town gets will be put safely away for future expenses and possibly invested long term to keep taxes lower for the residents, or just pissed away? Because remember this day when the water and wastewater rates skyrocket and the residents cry about it. This company has no intention of doing this without making a substantial profit on top of the 25 million dollar debt service they will have. Leave it to the local politicians (idiots) to be so short sighted.