Indiana American Water closes on purchase of Lowell's Water System
Contributed By:The 411 News
Town places confidence in publicly traded water utility
Lowell’s Town Council closed on the $24.5 million sale of its water utility to Indiana American Water this week, following approval by the Indiana Utility Regulatory Commission on December 22, 2021.
Indiana American Water President Matt Prine announced the company’s acquisition of the Lowell water system. The purchase of the system adds approximately 4,000 water customers to the company’s customer base, which represents a population of nearly 11,000 residents.
“The acquisition of this system will help hold future rates down for Lowell customers as needed investments are made and also provide access to operations and capital management water professionals and a number of customer service options and payment methods,” said Prine. “Indiana American Water already provides water service to several nearby communities, so this is a good fit for us and a continuation of our efforts to expand our presence across Indiana.”
IAW will operate Lowell’s water utility system that uses groundwater as a source.
By selling its utility, Lowell officials believe IAW can better furnish and maintain efficient, safe, and reasonable services and facilities. Monies gained from the sale will go to the town’s general fund and other community needs.
According to Lowell Town Council President Todd Angerman, “Lowell customers will benefit from Indiana American Water’s experience and expertise and the company’s large customer base across the state will provide much greater economies of scale and future rate stability by keeping water rates lower than they would have been as a small stand-alone system. The acquisition will also help us to meet future growth in the area and provide the resources to focus on other community needs.”
The Lowell acquisition marks the largest acquisition by Indiana American Water in more than two decades, Prine said. The company provides water service to approximately one in five residents across the state and owns or operates more than 35 water and wastewater systems in Indiana.
Story Posted:12/30/2021
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