Wardsville water, sewer system sale official

Missouri American Water completed its acquisition of the Wardsville water and wastewater systems Tuesday, adding approximately 475 water and 406 wastewater customers to its more than 460,000 statewide customers.

The purchase price for the water and wastewater systems is $2.75 million.

The Missouri Public Service Commission (PSC) announced approval of Missouri American Water's application to buy the systems in April.

Village trustees entered into an agreement with Missouri American Water in December.

New requirements from the Missouri Department of Natural Resources for village water and sewer systems were a major factor in Wardsville's decision to sell the systems.

The Northwest Treatment Plant was completed in 2003, giving Wardsville a then up-to-date sewage treatment facility that met all EPA regulations, which have changed. The plant was not built to minimize the amount of ammonia in its discharge. The EPA now has stricter limits on ammonia discharge, and none of the three Wardsville sewage treatment plants - Deer Haven, Churchview and Northwest - can meet this new limit.

The Board of Trustees hired an engineering consultant in 2014 to investigate options to meet the new limits. The cost estimates for these options ranged from $4 million to $12 million. Wardsville would have been required to borrow money to pay for the construction work and would have had to raise sewer rates to pay off the loans.

The decision to sell the water and sewer systems was based on the belief no one would buy the sewer system alone, given its expense to own and operate.

Meters for customers in Wardsville began to be changed Tuesday, and those customers should receive their first invoice from Missouri American Water the week of June 26. Water and wastewater rates in the city are set by the PSC and will not change upon completion of the deal.

Currently, the Wardsville system's water rate is $13.75 for the first 1,000 gallons of water used and $2.25 per each 1,000 gallons after that. The sewer rate is $32.50 for the first 1,000 gallons and $9 per each 1,000 gallons after that.

Last July, the PSC approved new water and sewer rates for all districts served by Missouri American Water.

The typical Jefferson City water customer using 4,200 gallons saw rates go down from $41.30 to $32.72. The Jefferson City district's flat sewer rate was raised from $65.22 to $66.93 a month.

Wardsville will become part of Missouri American Water's Jefferson City water and sewer districts.

Company officials said the next time they could seek an increase would be in two to three years.