Iowa American Water purchases City of Blue Grass wastewater system

Iowa American Water, a subsidiary of American Water, the largest publicly traded U.S. water and wastewater utility company, has announced the acquisition of the City of Blue Grass wastewater system for $2 million. On July 12, 2022, the Iowa Utilities Board approved the acquisition. The newly acquired wastewater utility, Iowa American Water’s first sewer system operation in the state, adds approximately 750 wastewater customers to the company’s Iowa Quad Cities service area.

“Our team is excited to provide an additional service to our water customers in Blue Grass,” said Randy Moore, President of Iowa American Water. “Since 2017, we have had the privilege of partnering with Blue Grass to provide clean, safe, and reliable service to the community, sharing our expertise while making critical investments in aging systems. We look forward to continuing that commitment as the community’s new wastewater provider.”

According to Blue Grass Mayor Brad Schutte, “The sale of the wastewater system to Iowa American Water is in the community’s best interest because it will provide residents with industry experts focused on upgrading the wastewater system just as Iowa American Water has done with our community’s water system.” Mayor Schutte continued, “The city will benefit from capital investments we would not have been able to make, and Iowa American Water will get the wastewater system back into compliance with the Iowa Department of Natural Resources (IDNR) in a timely manner.”

Iowa American Water plans to invest approximately $4 million in the city’s wastewater system to address issues as well as upgrade safety and security systems. Ongoing capital investment plans have been developed to address compliance with permit requirements and improve operational efficiencies.

New sewer rates recently implemented by the City of Blue Grass will continue under Iowa American Water’s ownership. Customers pay a monthly fixed charge for sanitary sewer service of $39.48 for all meter sizes up to 2,500 gallons, and a variable charge of about 74 cents for each 100 gallons after the first 2,500 gallons. A typical monthly sewer bill for a Blue Grass customer using 4,000 gallons is $50.60.

Since Iowa American Water acquired the Blue Grass water system in 2017, the company has invested more than $3 million to upgrade water service infrastructure including installation of a three-mile water transmission line that interconnected the Blue Grass water system with Iowa American Water’s system to increase water pressure and improve water quality.

“We are happy to expand our expertise and services to wastewater in Blue Grass,” Moore added. We are looking forward to continuing to support the community and partnering with the city and its residents. We appreciate the City’s trust and confidence in our team of water and wastewater professionals.”

Blue Grass customers will soon receive a letter in the mail from Iowa American Water to provide them with additional information about the new wastewater service the company is now providing in their community. To learn more about Iowa American Water, visit Partnering with Us under About Us at www.iowaamwater.com.