Long Island American Water, the Lynbrook-based water company that already serves portions of southwest Nassau County, became the largest investor-owned water utility in the state this week after aquiring several water systems from .
The new company will continue to serve , Merrick, Bellmore, Levittown, Massapequa Park, East Massapequa and parts of Glen Cove.
Adding these new systems, which are located in Nassau, Washington, Westchester and Ulster counties and serve approximately 152,000 people, nearly doubles the LIAW's customer base in New York. Its parent company, American Water Works Company, Inc., paid $39 million in cash and assumed debt of $23 million, reports MarketWatch.
LIAW also sold off eight of its water systems and one wastewater system in Ohio to Aqua America in a separate transaction, for approximately $101 million in cash and $11 million in assumed debt. As a result, LIAW will be receiving net cash of approximately $60 million through the deals.
"We have a strong track record of making needed investments in our water systems and treatment plants to ensure reliability and we are pleased to bring that level of service to many more people who live in New York," said Bill Varley, president of Long Island American Water.
In March, a NYS Public Service Commission to raise rates, albeit the $5.5 million increase was lower than the amount the company originally asked for.
The Commission is also requiring LIAW to "accelerate its efforts to determine the reasons for instances where discoloration, from iron or other possible sources, persists despite the company’s filtration plants, so that additional remedies can be implemented where needed." This stems from an ongoing issue in Malverne and Lynbrook.
Jaime Sumersille contributed to this story.
