Virginia American Water Finalizes Acquisition of Town of Cape Charles Water and Wastewater Systems

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240424085131/en/