Consolidation Continues In Midwestern Water Market

In a move that will further consolidate the water industry in the midwest, Indiana American Water has acquired Georgetown Water, a utility in Southern Indiana valued at $6.4 million.

Indiana American Water says the deal to buy the utility will add about 1,300 customers to its customer base, Inside INdiana Business reported. The Indiana Utility Regulatory Commission has already approved the deal.

“Georgetown Town Council President Everett Pullen says the community was struggling to address local infrastructure needs. He says the acquisition will help tackle those concerns while saving money for customers,” the report said.

The town will likely invest the money it received in the sale, according to the News and Tribune.

"Since we sold it, we actually lost income to the water that was coming in, and we want to set back and make sure we don't get ourselves into the hole," Pullen said, per the report.

"We want to make sure it goes to exactly what the town needs and nothing else," Pullen said in a previous News and Tribune report.

Georgetown leaders approved the measure to sell the water utility in February, the report said.

"It was leaking and losing money, and we had to make our rates so high to pay for that, and so we looked at it and said we can drop residents' rates and not have to deal with the overall maintenance of it," Councilman Chris Loop said.

Indiana American Water President Deborah Dewey weighed in on the deal in a statement.

“The acquisition of this system will provide Georgetown customers with lower rates and access to operations and capital management water professionals and a number of customer service options and payment methods. Indiana American Water already provides water to several nearby communities and to the Town of Georgetown through a wholesale contract, so this is a good fit for us and a continuation of our efforts to expand our presence across Indiana,” she said.

“In a time when communities are looking for new and innovative ways to deal with challenges they’re facing and hold the bottom-line on expenses, this acquisition is a great solution for the utility and its customers,” she continued.

To read more about how utilities are run financially visit Water Online’s Funding Solutions Center.