July 15, 2011, Cover Stories, Merrick Life
Aqua New York sold to Long Island American Water
Local residents will have new water entity to deal with.
Aqua America, the utility that provides water for residents in Merrick, Bellmore, Wantagh, Seaford and parts of Massapequa, has reached an agreement to sell its New York operations to American Water Works Company.
Long Island American Water, a subsidiary of American Water Works, is the largest investor-owned water company, in the state of New York. With this agreement, Long Island American Water will provide water to all of the communities along the South Shore of Long Island, stretching from Lynbrook to parts of Massapequa as well as the Five Towns. Long Island American Water provides water to 248,000 people in 31 South Shore communities.
This acquisition will add another 152,000 customers to its Long Island operation, including the 54,000 customers now served by Aqua New York.
In the agreement with Aqua, American Water will purchase Aqua’s seven regulated water systems in New York for approximately $71 million. In a separate agreement, American Water will sell its eight regulated water systems and one wastewater system in Ohio to Aqua for approximately $120 million.
“We are pleased to nearly double our customer base in Long Island and beyond and we look forward to the opportunity of providing quality water service to all of our new customers,” said Bill Varley, president of Long Island American Water.
“We have a strong track record of making needed investments in our pipes and plants to ensure reliable service and we are pleased to bring that level of service to many more people who live in New York.”
In April, Long Island American Water filed for a rate increase of $9.56 million with the Public Service Commission. “There has been no decision on this request yet,” said Sandy Choi, a spokesperson for Long Island American Water. If approved, the increase will be about 20 cents a day for the average customer, its press statement said.
Meanwhile, Aqua America is moving forward on its plans to construct two small buildings to house a new well and provide water treatment and purification equipment as well as build a 158-foot elevated water tank. Both projects would be on its property on DeMott Avenue in Wantagh.
Both projects must also go before the Town of Hempstead’s zoning Board of Appeals for a public hearing on August 10.
Also complicating matters is the re-activation of the Water Authority of Southeastern Nassau County, which is studying the feasibility of a public takeover of the private water provider, Aqua, because of what residents believe is poor service and high water rates.
American Water was founded in 1886 and is the largest publicly traded U.S. water and wastewater utility. It is headquartered in New Jersey.
