California American Water acquires Bellflower’s city municipal water system

California American Water, a subsidiary of water and wastewater utility company American Water, has acquired Bellflower city’s municipal water system for $17m.

The sale has been approved by Bellflower City Council, California, following a unanimous voter approval by the residents in November 2016 election.

However, the deal still awaits approval of the California Public Utilities Commission (CPUC).

California American Water president Rich Svindland said: “We have a strong legacy and presence in the Los Angeles region where we’ve been providing water service for over 50 years.

“Pending approval by the California Public Utilities Commission (CPUC), this acquisition will provide residents with access to a long-term, reliable water supply for years to come. We are proud to serve our new Bellflower customers, and ensure that their water quality meets or surpasses state and federal standards.”

Located about 19 miles away from California American Water’s operations centre in Los Angeles county district, the city’s municipal water system serves about 10% of the city.

Bellflower mayor Ron Schnablegger said: “California American Water has a goal of providing reliable and efficient water services to customers in Los Angeles County.

“The company's commitment to its customers, working safely and being a model of environmental protection is consistent with the city’s philosophy. The city is pleased residents will have excellent water service from California American Water.”

On completion of the acquisition, California American Water has planned to modernise the system’s water infrastructure, including replacing water main lines.

California American Water offers services to more than 615,000 people including 28,000 households in Los Angeles County.

The company offers low-income ratepayer assistance programme and conservation programmes including rebates and free water saving devices to its new customers.