By Heather Michon
Correspondent
The parent company of Aqua Virginia, which operates the water and sewer systems for Lake Monticello and surrounding subdivisions, will soon merge with one of the nation’s largest water utilities.
American Water Works announced on Oct. 27 that it will acquire Essential Utilities, the parent company of Aqua, in an all-stock deal valued at about $40 billion.
The deal, unanimously approved by both companies’ boards, combines two of the nation’s largest regulated utilities into a $63 billion enterprise operating water and wastewater facilities serving 4.7 million customers in 2,000 communities across 17 states and more than two dozen military bases.
The combined company will operate under the American Water Works name and will be headquartered in Camden, New Jersey.
“This merger enhances our ability to invest in critical infrastructure and deliver superior service at affordable rates,” American Water Works CEO John C. Griffith said in a statement.
“There will be no change in customer rates as a result of the merger,” both companies said in a joint statement.
However, in September, Aqua Virginia filed a rate increase request with the SCC seeking approval for a 26.42 percent hike in water rates and a 29.95 percent increase in wastewater rates across its Virginia systems, including the Lake Monticello units.
That request is still under SCC review.
The SCC will also review the merger itself once a formal application is filed. The agency has 60 days to approve or disapprove the transaction; if it takes no action, the deal is automatically approved.
Assuming the SCC regulators approve, the companies must then obtain other state and federal approvals. The merger is currently expected to close by the end of the first quarter of 2027.
Essential Utilities shareholders are expected to receive about 10 percent more value per share than recent trading prices.
