CHARLESTON, W.Va. — West Virginia American Water Company has decided to rescind its offer to purchase the Sissonville Public Service District.
The company submitted their offer to purchase the water assets from the Sissonville PSD in February. They were also trying to acquire the wastewater system from the Union Public Service District in Cross Lanes.
The Union PSD recently voted to reject WVAWC’s offer to purchase their assets. Director of Business Development with the water company Brooks Crislip said the two PSD’s were tied together at a financial standpoint. Union’s decision made it hard for the water company to move forward with purchasing the Sissonville PSD by itself.
“That then made it an unattainable position for the company to move forward with the Sissonville transaction because of the rate impact that it would have,” Crislip told the Kanawha County Commission Thursday.
Crislip said the company was hoping to acquire both PSD’s and make improvements to all systems.
“We were disappointed,” Crislip said. “I think there’s a lot of opportunity in both communities, but particularly Sissonville.”
Commissioner Ben Salango was also hoping the water company would move forward with taking over the Sissonville PSD and making investments there.
“I understood back then that they were tied together and I was hoping West Virginia American Water would still move forward with Sissonville, but it may not be economically feasible at this point,” he said.
“We were very much looking forward to welcoming them into the family,” Crislip said regarding Sissonville PSD employees.
Sissonville PSD board member Pat Taylor said the board planned to vote on whether to let WVAWC take over their water system in their meeting scheduled for Tuesday of this week, but now that won’t be necessary.
The water company said they had plans to make more than $19 million worth of improvements to the PSD over the course of five years.
It’s still possible the Sissonville PSD would look at an offer from WVAW sometime in the future. Kanawha County Commission President Lance Wheeler asked Taylor if they would.
“We’re always inclined to look at an offer,” Taylor answered.
Investments made into the PSD would likely result in rate increases for customers.