Aqua America’s parent company appears to be headed toward a merger with American Water Works Company, Inc.
It’s a union that took local village officials by surprise but, so far, they don’t see much of a change in service.
The combined enterprise will serve 4.7million water and wastewater connections across 17 states, with a combined rate base of $29.3 billion.
The merger of Essential Utilities, Inc. – under which Aqua operates – and American Water Works, was announced on October 27.
The new company will be known as American Water.
A lengthy press release issued by the utility companies emphasized the merger will not impact local communities served by Aqua.
In Monee and Peotone, village officials said they hope that is the case, adding they were given no advance notice of the sale.
“We were made aware of the Aqua sale when everyone else learned of this merger,” Peotone Village Administrator Nick Palmer noted.
“It really shouldn’t negatively impact Peotone, as the contract was to purchase the village’s assets, which are owned by Aqua – now the new owner. Nothing would change for that past sale.
“Our hope is always that prices stabilize and are more affordable for Peotone residents. However, that is the water company’s responsibility for setting prices, and Mayor (Chris) Vieaux has advocated for lower prices to no avail.
“The village will continue to work with the new owners to ensure the best quality at the best prices,” he added.
“We hope to learn more about the newly reorganized structure soon and may have additional comments once we have more information.”
Similarly, Monee Village Administrator Ruben Bautista said officials there were not given a heads-up about the merger.
“At this time, it would be premature for the village to provide detailed comments on how the recent change in ownership may affect Monee’s wastewater service, cost structure, or the existing service contract,” he said.
“As of today, the village has not been formally contacted or briefed by either the current management team or the new owners, American Water, regarding their specific goals, transition plans, or long-term commitments to the local infrastructure and service delivery in Monee. Given this merger is still very new, it remains unclear what direction the new ownership will ultimately take in terms of operations, rate strategy, and service priorities.
“The village intends to reach out to American Water soon to initiate discussions and gain a clearer understanding of their objectives, timeline, and approach to continuing service within our community. Once that meeting occurs and we have more definitive information, we will be in a better position to assess any potential impacts or opportunities that may result from this transition,” he said.
Monee’s potable water supply comes from its own wells. The village contracts with Aqua only for its wastewater treatment.
“Regarding the broader and ongoing discussion about the village’s potential development of its own wastewater treatment plant, this remains a complex and long-term consideration,” Bautista said.
“The recent 44 percent rate increase imposed by Aqua Illinois prompted renewed conversations about the village’s future options, including the feasibility of building and operating its own facility. However, no formal plans or commitments have been made at this time.
“The village remains committed to transparency and will continue to share updates with residents as new information becomes available. Our goal is to ensure that any future decisions are made with a clear understanding of the facts and with the best interests of the community in mind.”
While the Village of University Park also is served by Aqua, Mayor Joseph E. Roudez III did not respond to a request for comment.
The boards of directors of both companies have unanimously approved the agreement to combine in an all-stock, tax-free merger as a leading regulated U.S. water and wastewater public utility, with a pro forma market capitalization of approximately $40 billion and a combined enterprise value of approximately $63 billion, based on closing stock prices as of October 24.
American Water President and Chief Executive Officer John C. Griffith said, “This combination brings together two industry leaders united by our shared mission to provide safe, clean, reliable, and affordable water and wastewater services to our customers. By joining forces with Essential, the combined company’s enhanced scale and operational efficiency will support continued investment in our critical infrastructure, enabling us to continue providing superior customer service at affordable rates. We look forward to bringing together the talented teams of both companies to help solve the many water and wastewater challenges across the country and expand our customer base.”
Essential Chairman and Chief Executive Officer Christopher H. Franklin said, “Throughout Essential’s nearly 140-year history, we have consistently led with purpose to shape a future rooted in sustainability, innovation, resilience, and best-in-class service for our customers. We are confident that the combined company will build upon our longstanding track record of delivering safe and reliable services and be better positioned to solve today’s challenges, while creating a sustainable future. Together, we will have expertise, financial strength, and regulatory credibility to continuously improve our infrastructure and meet the evolving needs of our customers. American Water and Essential will continue to enable our communities to thrive.”
The merger will not be finalized quickly. Pending approval by public utility regulators and shareholders, it is expected to be completed in early 2027.