Virginia American Water to invest over $10 million in water infrastructure upgrades with $15 million Cape Charles acquisition
(WO) – Virginia American Water has closed its acquisition of drinking water and wastewater system assets of the Town of Cape Charles, Virginia, for $15 million. This acquisition brings approximately 1,400 water and wastewater customers to Virginia American Water and is the second to be completed by the company under the Fair Market Value Legislation enacted by the Virginia General Assembly in 2020.
As part of the acquisition, Virginia American Water will invest more than $10 million in future critical system improvements over the next eight years. A comprehensive planning study will be completed during the first year to identify and prioritize the required capital investment projects to improve the systems and the quality of the drinking water.
The Town of Cape Charles signed an agreement to sell its drinking and wastewater systems to Virginia American Water in January of 2023, based on the need to upgrade the system's infrastructure and bring additional experience and expertise in water management. Virginia American Water takes a proactive approach to maintaining infrastructure and invested more than $53 million in water system improvements statewide in 2023 alone.
“Joining Virginia American Water was the right decision for Cape Charles. This has been a lengthy process to allow the amount of due diligence needed for a decision of this magnitude and for the transparency and public input we committed to from the beginning.
“As a partner, Virginia American Water brings the expertise needed to properly operate both our water and wastewater systems, as well as economies of scale that will benefit our customers that the Town couldn’t have achieved on its own. We are also thrilled to see our eight utility employees transition to become Virginia American Water employees, keeping all that local knowledge and experience here working for our residents,” said John Hozey, Cape Charles Town Manager.
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