American Water subsidiary agrees to purchase Neosho water, wastewater system

Missouri American Water (AWK), a subsidiary of American Water, announced it has signed an agreement with the City of Neosho to purchase the water and wastewater systems for $34.5M. The agreement was submitted today to the Missouri Public Service Commission following unanimous approval from the Neosho City Council. The Neosho system provides water and wastewater services for approximately 5,400 customer connections, the company stated. Pending PSC approval, the transaction will transfer the City of Neosho’s water and wastewater assets and customer base to Missouri American Water. Missouri American Water and the City of Neosho expect to close on the sale following an approximate 6- to 12-month PSC review period. At the time of closing, City of Neosho customers will continue to pay their existing water and wastewater rates, and any future rate changes will be reviewed and approved by the PSC. As part of the agreement, and subject to approval by the PSC, Missouri American Water will commit to investing approximately $35M in water and wastewater system improvements in the first five years following completion of the acquisition. The company anticipates completing the acquisition in the second half of 2026, pending approval from the PSC.