An Indiana American Water tower is shown. Staff photo by Joseph S. Pete
Indiana American Water has purchased the Lowell water utility in the company's largest acquisition in more than two decades.
The wholly owned subsidiary of American Water, an investor-owned utility with operations in 25 states, spent $24.5 million to buy the water utility in south Lake County. It serves about 4,000 residential and business accounts, providing water to Lowell's roughly 11,000 residents.
Indiana American Water President Matt Prine said the company will be better able to hold rates down while making necessary investments and providing operations and management professionals and more customer service and payment options.
“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,” Prine said.
The Indiana Utility Regulatory Commission approved the sale, which closed this week.
“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," Lowell Town Council President Todd Angerman said. "The acquisition will also help us to meet future growth in the area and provide the resources to focus on other community needs.”
Lowell, which is outside the Great Lakes basin, uses groundwater drawn from wells. Indiana American, which maintains an office in Gary and a water treatment facility in Ogden Dunes, now operates more than 35 water and wastewater utilities across the Hoosier State. It estimates it supplies tap water to about one in five residents in Indiana.
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