American Water Awarded Contract for South Orange Village Water System

American Water announced last week it has been awarded the operation and maintenance contract for the Township of South Orange Village water services in Essex County, N.J.aw

The award, which is valued at approximately $10 million over the 10-year term of the contract, follows a period of negotiations after the company’s Contract Services Group was selected through a competitive process. American Water Contract Services is part of the company’s market-based American Water Enterprises subsidiary.

The contract includes operations and maintenance for the Village’s 4,750 connections, 60 miles of water main, 600 hydrants, 3,000 valves, three storage tanks, and one water supply well.

“We are excited to partner with the Village of South Orange through this contract,” said Deborah Degillio, president of American Water Enterprises. “Through our operations, engineering, and technology expertise, we are looking forward to working with the Village in implementing system improvements to help ensure high quality service to the community.”

“We are pleased to have formed this partnership with American Water, which is a well-respected water solutions provider for millions of people nationwide,” said Howard Levison, Village Trustee.

“This partnership will provide benefits to the Village through increased efficiency of operations and leveraging of expertise as we look to make needed improvements to the system to provide continued reliability for our residents,” added fellow Village Trustee, Walter Clarke.

In a separate agreement in 2015, the Village’s board of trustees awarded a contract for bulk water sales to New Jersey American Water. The agreement also includes the construction of a new interconnect, booster station and other distribution assets, which are scheduled to be in place by Jan. 1, 2017.

American Water’s Contract Services Group provides water and wastewater management solutions for municipal and industrial clients. The company pioneers solutions for optimizing the total water cycle, turning liquids, solids and gases to its customers’ advantage. The Contract Services Group is part of American Water Enterprises, a market-based subsidiary of American Water.

American Water to Purchase Shorelands Water Company

American Water has signed an agreement to acquire the Shorelands Water Company, a privately-owned water utility that provides water services to more than 11,000 customer accounts in Monmouth County, N.J. Financial and other terms of the sale were not disclosed. The agreement is subject to the review and approval of the New Jersey Board of Public Utilities.

“This important acquisition provides a direct link with our water system serving the community of Union Beach, enhancing supply to the northeastern sections of Monmouth County that we serve. The strength of the Shorelands system will help New Jersey American Water achieve a goal of increased reliability for customers without the need for additional projects that were being evaluated,” said Bill Varley, president of New Jersey American Water.

Shorelands was first established in 1926 as a supplier to the summer residents of West Keansburg. Under the guidance of the current owners since 1957, it grew to provide service to residents in the Bayshore communities of Hazlet, Holmdel, Union Beach, Keyport and Aberdeen. Shorelands delivers approximately two billion gallons of water to its customers annually.

When completed, the acquisition will continue the expansion of New Jersey American Water’s operations. Earlier this year, American Water completed the acquisition of Environmental Disposal Corporation (which provides service in the Bernards and Bedminster area), and New Jersey American Water acquired the former Roxiticus Water Company (in Mendham Township) and began providing water and wastewater service to Elk Township.

 

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