Illinois American Water, a subsidiary of American Water Works Company, Inc., announced today it has completed the acquisition of the City of Madison wastewater collections system for $3 million. The deal adds roughly 1,500 wastewater customers to the company’s Metro East footprint near St. Louis, expanding its regulated service area in Illinois.
The acquisition was approved by the Illinois Commerce Commission on September 18, 2025, and the company plans to invest $9.1 million in capital improvements over the next five years. Planned upgrades include collection system enhancements, lift‑station improvements, and control‑and‑security upgrades at pump and lift stations to meet regulatory requirements and support long‑term service reliability.
For American Water, the Madison acquisition strengthens its presence in a high‑growth region, increases its customer base, and provides a platform for future rate‑case revenue growth. The transaction aligns with the company’s broader strategy of consolidating fragmented water systems and deploying capital to modernize infrastructure, positioning AWK for continued earnings expansion.
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