West Virginia American Water in Charleston, W.Va. (Lexi Browning | West Virginia Watch)
The Nitro City Council voted Tuesday evening to sell off its sewage system to West Virginia American Water Company. It’s the latest acquisition made by the company, which has been expanding its control in the Kanawha Valley and beyond in recent years.
Nitro City Council voted 7-1 in support of the sale, with Del. Andy Shamblin, R-Kanawha, who also serves on the city council, the lone no vote. Shamblin could not be reached for comment regarding the vote on Thursday. The sale, though approved by the city council, will still need to be approved by the state Public Service Commission.
Nitro Mayor Dave Casebolt said at the meeting, which was streamed on Facebook, that American Water offered $20 million for the system, though details for what assets exactly are included in the sale weren’t shared. As of Thursday, nothing appears to have been filed with the PSC regarding the sale of the system.
About $11 million of the $20 million earned through the sale, if it goes through, will help the city pay off debts currently held by the wastewater system, Casebolt said.
Nitro Regional Wastewater serves 4,474 customers in the region, according to its 2024 annual report filed with the PSC. Those customers currently pay $45.88 per 3,400 gallons of water used, with a minimum bill of $28.91. Upon completion of the sale, customers will transition over to become American Water wastewater customers, paying the company’s rates beginning at a 29% discount that will eventually be phased out to the full rate, Casebolt said.
Without a formal filing with the PSC, it’s impossible to know what exact rates new customers will be paying.
According to American Water, the minimum wastewater bill for the company is $61.42. Per the PSC, the company charges $83.65 for 3,400 gallons of water used a month — the 10th highest rate of any sewage utility in the state. With the discount and based on those rates, new Nitro customers would begin paying $59.39 per 3,400 gallons used for their sewage services.
That’s a 29% monthly increase compared to current rates. Once the full rates are charged, customers would be looking at an 82% increase compared to what they pay now.
In an interview with MetroNews, Nitro City Recorder Rich Hively said the sale is necessary because American Water can better operate the system and invest in much needed upgrades and equipment. If the sale didn’t happen, he said, customers would be faced with increased rates over a short period of time to cover the costs of repairs and maintenance.
Casebolt told those at Tuesday’s meeting that the company has committed to investing about $29 million into the system over its first five years of operation and ownership. That would include construction of new stormwater lines to help address sewage overflow and wastewater flooding concerns. Once those lines are constructed, they would become the city’s responsibility to maintain, Casebolt said.
The sewage utility currently employs 12 people full time. Those employees will all be kept on by American Water, Casebolt said, and their years of service will transfer to the larger company, making them eligible for any benefits.
For years now, American Water has been slowly growing its sewage services in West Virginia. Meanwhile, its takeover of water utilities — especially in Kanawha County — has been quick, reminiscent of the company’s business plan in the 1990s. After multiple sales and acquisitions to American Water, there is currently only one public water utility — St. Albans Municipal Utility Commission — operating in Kanawha County.
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