Aqua to sell New York subsidiary to L.I. American Water

For more than a year, Bellmore-Merrick residents, frustrated by their water service from Aqua New York, have sought a new service provider. They’re about to get their wish, just not in a way many saw coming.

American Water Works Company, which operates under Long Island American Water, recently announced that it will acquire all of Aqua’s water systems in New York state. In a separate but contingent deal, Aqua will acquire all of American Water’s utilities in Ohio.

Aqua’s service area in New York covers four counties, including parts of Nassau County. The private company provides water for residents of Bellmore, Merrick, Wantagh, Seaford, East Massapequa, Levittown, Massapequa Park and parts of Glen Cove. Aqua will sell its seven water systems, which provide water to 52,520 customers in the four counties. American Water provides water to about 220,000 customers in Valley Steam, Lynbrook, East Rockaway, Malverne, parts of Lakeview, Baldwin, the Five Towns, Atlantic Beach, Island Park, Oceanside, South Hempstead and Roosevelt.

American Water will purchase the Aqua New York subsidiary for roughly $71 million. In the other deal, Aqua America will purchase eight water systems and a wastewater system in Ohio from American Water for about $120 million.

"We are pleased to nearly double our customer base on Long Island and beyond, and we look forward to the opportunity of providing quality water service to all of our new customers," said Bill Varley, president of Long Island American Water, in a news release. "We have a strong track record of making needed investments in our pipes and plants to ensure reliable service, and we are pleased to bring that level of service to many more people who live in New York."

The deal is still in its early stages and would not be final until some point in the first financial quarter in 2012. “Customers shouldn’t experience any kind of change” in their service as the deal is processed, said Mia Angiolillo, an Aqua spokeswoman.

The deal, which will take many months, is not likely to affect the status of the Southeastern Nassau County Water Authority, a recently reinstated, five-member board that will continue to investigate the feasibility of a public takeover of Aqua New York. John Reinhardt, the board secretary, said the sale will not change the board’s purpose. The board will investigate a public takeover, regardless of ownership, Reinhardt noted.

“That would remain our intent,” he said.

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