LI American Water Chief Discusses Aqua Aquisition

If a deal is approved between American Water Works, Inc. and Aqua America, Inc., Lynbrook-based Long Island American Water (LIAW) will take over the operations of Aqua New York and become the largest water supplier in the state.

LIAW will be submitting the proposal for approval to the state Public Service Commission in the very near future, officials said. And though that decision is not expected until at least the end of this year, William Varley, president of LIAW, talked with Lynbrook Patch about the prospective deal.

"It made sense for both companies," Varley said of the agreement between American Water Works, Inc., which would sell its Ohio operations, and Aqua America, Inc., which would sell its New York operations. This would mean the end of Aqua's subsidiary, Aqua New York, which supplies the areas of Bellmore, Merrick, Wantagh, Seaford and several others in Nassau County. "When all is said and done, it's gonna be one company."

With the acquisition of Aqua New York's property, Long Island American Water will be supplying approximately 370,000 people, up from 220,000. Varley said the deal between the two companies will have "absolutely no impact on service for existing customers." He could not speculate on what would happen to customers' water rates, as Aqua New York customers are under a rate order until 2013.

Varley said he hopes that Long Island American Water can become involved in its new community, much like the company has done in current service areas like Lynbrook and Malverne. The LIAW president has met on numerous occasions with Malverne residents to discuss a brown-water issue, and recently sponsored the Lynbrook Chamber of Commerce's installation dinner.

Varley said he always wants to continue to improve the quality of water in the new service area, as the company has done here in the western part of Nassau County.

"The companies are very similar," he said. "We're going to operate that portion exactly like ours."

Patch will continue to provide updates as they become available.