Continuously serving Kosciusko County since 1854
Warsaw water customers are in for a change, but they'll be hard pressed to notice it.
United Water of Warsaw, along with several other small utility subsidiaries in Illinois, Missouri and Virginia, has been sold to American Water Works Co., based in Voorhees, N.J.
The reported sale will be an estimated $49 million. The utilities currently serve about 35,000 water customers.
According to both water utilities, the completion of the transaction is contingent upon approval from the Indiana Utility Regulatory Commission, which is expected to be received by the end of 1999.
"We are committed to strengthening our core utility business by focusing our efforts in service areas that are experiencing significant growth and development," said Donald Correll, chairman and chief executive officer of United Water. "This prospective sale is part of a strategic restructuring of our utility portfolio aimed at enhancing the return on our regulated investments."
The sales will close individually, depending on when each state regulating commission approves the transfer of ownership.
Carolyn Iglesias, director of corporate communications for United Water, said Warsaw customers should not see any change in the quality of service they receive.
"Customer service is the top priority at United Water and we would expect that American would hold the quality of that service to the same high standards," she said.
American Water Works Co. currently serves 10 million people in 23 states through its utility subsidiaries.
"This (acquisition) is a perfect illustration of the value that can be derived from consolidation," said J. James Barr, president and chief executive officer of American Water Works Co. "The combination of the water utilities we are acquiring in this transaction, with those we already have, will enhance the ability to provide customers with the service they expect at a reasonable price."
According to Chris Doron, vice president of American Water Works of Indiana, city residents can expect the same quality of service they have received from United Water, and there no planned rate increases in the foreseeable future.
"In terms of service, United has established a good reputation and we intend to see that reputation will be continued with American," she said.
Doron added that American will be filing the change of ownership petition with the IURC within the next two weeks. The approval process typically takes approximately four months.
American Water Works Co. of Indiana is based in Greenwood and also has operations in Wabash.
