Illinois American Water Acquires Water System
Illinois American Water has officially acquired the Village of Sadorus water system, which will be incorporated into the company’s Champaign County District.
The Village of Sadorus Board voted in favor of the sale in April 2016 and the Illinois Commerce Commission approved the sale for $240,000 on Feb. 1, 2017.
“We look forward to investing in Sadorus and ensuring quality water service to our new customers,” said Illinois American Water President Bruce Hauk.
Illinois American Water will invest approximately $1.2 million to address current issues with the water system including low pressure, discoloration, taste and odor. Illinois American Water’s investment includes installing two miles of water main to connect the Village of Sadorus to the Champaign County water system. In addition, undersized and outdated water mains in Sadorus will be upgraded and over 20 new fire hydrants installed.
“These improvements will enhance water quality as well as fire protection in Sadorus,” Dave Farrar, senior manager of field operations and production for the Champaign County District, said.
Barring no unforeseen circumstances, the project is expected to be completed by the end of 2018.
The appraisal process used for the Sadorus water system was conducted under the supervision of the ICC and established as part of the Illinois Water Systems Viability Act. According to Hauk, this law gives communities an alternative to value their water and/or wastewater system when considering being acquired by an investor-owned water utility.
“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,” Hauk said. “Because of this, systems were deprived of receiving adequate value for their system.”
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