ROCKY MOUNT – American Water has proposed paying $175 million for Rocky Mount’s water and wastewater utilities, a potential transaction that would move essential municipal infrastructure into private ownership.
The proposal was presented during the Rocky Mount City Council’s Sept. 14 Committee of the Whole meeting. The council did not approve a sale. City officials said public engagement and community input would come before any potential transaction, according to WRAL.
Rocky Mount currently owns and operates its water and wastewater systems alongside its electric, natural gas, refuse, recycling and stormwater utilities. The American Water proposal concerns the water and wastewater operations, not the city’s other utility services.
An American Water representative told council members that the company would retain current water utility employees if a transaction is completed. The representative also said existing rates would remain unchanged and future rates would be regulated by the North Carolina Utilities Commission.
The company cited an independent engineering assessment that estimated more than $200 million in water-system investment would be required over the next five years. That estimate was presented as part of the company’s case for a purchase and has not been adopted by the council.
The municipal systems are extensive. Rocky Mount’s Water and Sewer Division maintains approximately 504 miles of water-distribution mains and 425 miles of sanitary-sewer collection mains. The water system includes seven elevated tanks and four ground tanks with 10 million gallons of storage capacity. The sewer network includes about 5,500 manholes and 36 lift stations.
American Water describes itself as the nation’s largest regulated water and wastewater utility. The company operates regulated systems in 14 states and serves approximately 14 million people.
The proposal follows Rocky Mount’s March decision to increase electric, natural gas, water and sewer rates by about 15% as part of a financial recovery plan. Council member Charles Roberson said he has concerns about private ownership of a public resource but wants the city to examine infrastructure needs and the long-term costs and benefits of both ownership models.
No timetable for a council decision, due-diligence process or possible closing was announced. Until the city takes formal action, the $175 million figure remains a proposal rather than an approved sale.