About American Water
American Water Overview
American Water is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, we keep life flowing by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 19 military installations.
American Water’s approximately 7,000 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. As one of the fastest growing utilities in the U.S., American Water expects to invest $46 to $48 billion in infrastructure repairs and replacement, system resiliency and regulated acquisitions over the next 10 years.
The company has a long-standing history of executing its core operations, aligned with sustainable best practices, through its commitments to safety, affordability, customer service, protecting the environment, an inclusive workforce and strengthening communities.
For more information on American Water visit amwater.com.
What is a private water and wastewater company?
A private water or wastewater company is a professional company that specializes in providing vital water and wastewater services to customers within its service areas. They own, operate, maintain and make necessary investments to upgrade or improve water and wastewater infrastructure. Most importantly, they are dedicated to delivering clean, safe, reliable and affordable drinking water service from source to tap and responsibly recovering, treating and returning wastewater to the environment.
- Private water companies across the U.S. serve nearly 40 million customers
- They treat and distribute 2.8 billion gallons of drinking water each day
- They maintain almost 250,000 miles of water pipes nationwide
What are the benefits of working with a private water and wastewater company?
Private dedicated water and wastewater service providers focus on and specialize in the ownership, operation and maintenance of water and wastewater systems. Their workforce comprises trained experts, technicians, scientists and engineers possessing decades of experience with the best practices of providing safe, clean, reliable and affordable service to customers and communities.
- Access to financial and capital planning resources and the ability to manage long-term investment in infrastructure.
- Knowledge and regulatory expertise to meet or surpass standards for quality.
- A single focus on operational excellence, from plant operations to maintenance of the distribution and collection system, capital planning, customer service and billing.
- Private companies have a demonstrated track record of maintaining compliance with safe drinking water and wastewater standards and receiving fewer violations compared to public systems.
How American Water’s scale benefits communities
Large providers with scale have greater access to resources ranging from financial and operational expertise to engineering and planning to water quality and regulatory compliance. This allows American Water to:
- Standardize industry-leading procedures and processes
- Exchange best practices across a national footprint
- Leverage access to a greater network of expertise
- Lower procurement costs on materials
- Distribute costs of investments across a larger customer base, allowing for long-term rate stabilization
American Water’s infrastructure investment and capital capability
- Across its national footprint, American Water plans to invest approximately $46–$48 billion over the next 10 years in water and wastewater infrastructure.
This scale allows American Water to: - Replace aging infrastructure before failures occur
- Deploy capital immediately following a transaction rather than waiting on grant cycles, bond approvals, or municipal procurement timelines
- Take a lifecycle-based approach to infrastructure planning instead of reactive repairs
Establishing American Water’s customer rates
Private water and wastewater rates are determined by state public utility commissions. Any proposed changes in rates are subject to extensive governmental review and approval. Rates are based on several factors, including:
- Costs associated with operating and maintaining treatment plants and underground pipes
- Capital investments related to upgrading water and wastewater treatment, distribution and collection facilities that have reached the end of their lifecycle or are needed to meet new and evolving regulations
- Taxes
American Water does not set rates independently. Any future rate change requires a formal, public rate case in which American Water must demonstrate that investments were prudent and necessary, and the state’s public staff participates as an independent consumer advocate.
American Water’s goal is to keep water bills affordable and within 1–2% of median household income. For the average residential customer, water service costs about a penny per gallon.
American Water’s approach to employees and workforce
- American Water’s standard practice is to is to offer employment to all qualified existing operators and staff following an acquisition. Local employees bring essential system knowledge that supports safe and reliable operations.
Employees gain access to: - Enhanced safety training and equipment.
- Structured career development within a national organization.
- Broader professional advancement opportunities.
- Strong retirement benefits including a 401(k) with company match, plus an additional company contribution of 5.25% of base pay.
| Benefit Category | American Water Offering |
|---|---|
| Retirement Savings | 401(k) with company match, plus an additional company contribution of 5.25% of base pay. |
| Health & Wellness | Medical, prescription, dental, and vision coverage; wellness program; Employee Assistance Program. |
| Paid Time Off | Generous vacation, sick, and personal holiday time; paid family leave. |
| Professional Development | Tuition reimbursement; job-specific training, instructor-led courses, and e-learning opportunities. |
| Financial & Other Perks | Annual incentive pay; employee stock purchase plan; company-paid life insurance; supplemental insurance options. |
Customer service
- American Water has been recognized by J.D. Power for customer satisfaction among large water utilities.
- American Water’s customer service has multiple payment options, including online account management, mobile app, automatic payments, mail, and in-person payment locations.
- The company provides 24/7 customer support and emergency communications.
- Customers can access usage information, billing history, alerts, and account services through the American Water mobile app and online portal.
- Customer assistance programs are available in many American Water states to support income-qualified households, including bill payment support and flexible payment arrangements.
Frequently asked questions
Rocky Mount’s water and wastewater systems face significant challenges, including aging infrastructure, evolving environmental regulations, rising costs, and PFAS contamination. Keeping pace requires substantial investment and specialized expertise that is increasingly difficult for any municipality to sustain while keeping rates affordable. American Water’s size and scale allow it to address these needs efficiently.
American Water would create a comprehensive capital plan for the systems and over $200 million in planned infrastructure investments in the first five years after the sale. The plan focuses on upgrading key pump stations, replacing aging water and sewer mains, modernizing SCADA control systems, and making other critical improvements to enhance reliability and maintain regulatory compliance. Additional investments involve advanced PFAS treatment, including design and installation of “state of the art” PFAS removal systems at the Sunset Avenue and Tar River water treatment plants.
If the sale is approved, Rocky Mount will use the $174.6 million offer price to address pressing financial priorities that benefit the community.
Rocky Mount customers should not expect any immediate changes to their rates. American Water would propose to adopt the Rocky Mount’s existing rates, subject to approval by the North Carolina Utilities Commission (NCUC). Any future rate changes would require NCUC approval through a thorough, public process that provides customers the opportunity to be heard. NCUC-approved incremental rate adjustments, which are usually at or below inflation, help provide stability and predictability for households and businesses.
Customers will be billed monthly based on their water usage. Monthly billing provides customers with smaller bills and makes it easier, especially for those on fixed incomes, to include the cost of water service in their monthly household budget. Customers will also have access to American Water’s online, paperless billing and auto bill pay features. Qualifying customers can take advantage of our customer bill payment assistance program. With debt cleared and operational costs off the city’s books, Rocky Mount gains new capacity to invest in the priorities that drive community growth.
The systems are currently liabilities to Rocky Mount, not assets. The investment required to repair the aging systems and meet evolving regulations will come at a tremendous cost to customers and Rocky Mount if the systems are not sold. Approving this sale will eliminate this financial and operational burden, allowing Rocky Mount to focus on other projects and direct its budget toward the investments that promote growth.
American Water would rely on the skilled experience of the employees currently operating Rocky Mount’s water and wastewater systems. These are the same local professionals who know these systems, the infrastructure, and the community they serve, and that knowledge does not disappear with a change in ownership.
The skilled employees of Rocky Mount’s utility are the systems’ most valuable asset. All current utility employees of Rocky Mount will be offered employment by American Water, capitalizing on years of knowledge and experience from these seasoned, local professionals. Employees will join an industry leader that offers training and career advancement opportunities and also become part of a respectful company where employees positively impact and reflect the communities they serve.
Just the opposite. American Water’s commitment to investing in the water and wastewater systems will address system deficiencies and help protect the environment. American Water has a strong water quality record, meeting or surpassing state and federal drinking water standards.
Resiliency is best achieved through consistent investment in water and wastewater system infrastructure and robust asset management planning. American Water’s engineering staff conducts a comprehensive capital planning study program on a five-year schedule, regularly identifying system needs, assessing project costs, alternatives, and risks to maintain a clear long-term view of system needs.
Water and wastewater service is all we do. American Water takes great pride in providing a high-quality service to its customers that meets all federal, state, and local water quality standards. American Water has case studies from across the country showing how the company’s capital and community investments have made those communities stronger places to live, work, and play.