Virginia American Water to purchase Cape Charles water, sewer systems

Virginia American Water has signed a comprehensive asset purchase agreement for the drinking water and wastewater assets of the Town of Cape Charles, Virginia for up to a maximum of $15 million, pending appraised values and regulatory approvals. The combined systems serve 2,300 customers.

As part of the acquisition, Virginia American Water committed to invest more than $10 million in critical system improvements over the next eight years. Improving drinking water quality is prioritized along with other projects to enhance system reliability and security.

“We are honored to have been chosen by the Town of Cape Charles to purchase and manage its water and sewer systems,” said Barry Suits, president of Virginia American Water. “Selling to Virginia American Water will allow the town to leverage our expertise and decades of water and wastewater experience throughout the state and provide a long-term solution for the town’s water challenges.”

Before completing the acquisition, Virginia American Water must obtain approval by the Virginia State Corporation Commission (SCC). The Town of Cape Charles and Virginia American Water anticipate completing the acquisition in late 2023 following SCC approval.

“There are few things more important in a community than safe and dependable water and sewer service,” said John Hozey, Cape Charles town manager. “The town has tried hard over the years to meet these needs but has sometimes struggled and found it hard to keep rates reasonable. So, we’ve spent over two years in due diligence trying to find the best way forward, and the Town Council has made the decision to entrust these critical functions to Virginia American Water.”