Illinois American Water President Bruce Hauk today announced the Company’s acquisition of the Dana/Long Point/Reading/Ancona Public Water District (Water District) water system. The purchase of the system adds approximately 150 customers to the Company’s customer base in the Streator District and serves a population of nearly 300 residents.

Illinois American Water is familiar with the Water District water system, and vice versa. Since 2009, the Water District continued to own its water distribution system while Illinois American Water operated and maintained the system. With the dissolution of the Water District in April 2015, the Water District chose to sell the water system to Illinois American Water.

"We have a strong legacy and presence in this area and nearby Streator where we’ve been providing water service for over 125 years,” said Bruce Hauk, president of Illinois American Water. “With this acquisition, we will expand our existing footprint and help ensure local residents have access to a long-term, reliable water supply for years to come.”

Former Water District Board President Ron Guest said, “We are pleased residents will continue to have excellent water service from Illinois American Water and also have access to all of the benefits their customers enjoy. Residents are assured of not only a reliable water supply, but one of high quality.”

The appraisal process used for the system was conducted under the supervision of the Illinois Commerce Commission (ICC) and established as part of the Illinois Water Systems Viability Act. According to Hauk, this new law gives communities an alternative to value their water and/or wastewater system when considering being acquired by an investor-owned water utility. He said, “Previous law only allowed the investor-owned water or sewer utility to pay the original cost minus depreciation to acquire a small system, public or private. Because of this, systems were deprived of receiving adequate value for their system.”

The acquisition of the Water District water system for $1.075 million was approved by the ICC on Dec. 16, 2015. The sale was closed today, Jan. 26, 2016, by Illinois American Water and the Water District. Customers will receive an Illinois American Water welcome packet in the mail.

Under Illinois American Water’s ownership, Water District customers will experience a decrease in their water bill due to no longer being required to reimburse the Water District for the local water system infrastructure. This will result in an approximate decrease of about $45 a month per customer. The typical residential customer uses between 4,500 and 6,000 gallons of water per month. Under Illinois American Water's rate structure, customers using about 5,000 a month will pay a little over $44.00 a month for water service.

The Water District will be incorporated into the company’s Streator District service area and join Illinois American Water’s other systems as a regulated utility under the jurisdiction of the ICC. Customers with questions may contact the local operations office at 815-672-4557.

About Illinois American Water

Illinois American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 1.2 million people. American Water also operates a customer service center in Alton and a quality control and research laboratory in Belleville.

Founded in 1886, American Water is the largest and most geographically diverse publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found at www.amwater.com.