The Town of Lowell will have its water services handled by an investor-owned company.
Indiana American Water said it acquired the Lowell water system, which adds approximately 4,000 water customers to its customer base, representing a population of nearly 11,000 residents.
The purchase of the Lowell water system for $24.5 million was approved by the Indiana Utility Regulatory Commission on Dec. 22 and closed by Indiana American Water and the Town of Lowell on Dec. 28.
“The acquisition of this system will help hold future rates down for Lowell customers as needed investments are made and also provide access to operations and capital management water professionals and a number of customer service options and payment methods,” said Matt Prine, president of Indiana American Water. “Indiana American Water already provides water service to several nearby communities, so this is a good fit for us and a continuation of our efforts to expand our presence across Indiana.”
The Lowell acquisition is the company’s largest purchase in more than two decades. The company provides water service to approximately one in five residents across Indiana and owns and/or operates more than 35 water and wastewater systems in Indiana.
“Lowell customers will benefit from Indiana American Water’s experience and expertise and the company’s large customer base across the state will provide much greater economies of scale and future rate stability by keeping water rates lower than they would have been as a small stand-alone system,” said Todd Angerman, Lowell town council president. “The acquisition will also help us to meet future growth in the area and provide the resources to focus on other community needs.”
Indiana American Water, a subsidiary of American Water, provides water and wastewater services to an estimated 1.32 million people around the state.
