The Kentucky Public Service Commission approved the merger between American Water Works Company, Inc. (AWK) and Essential Utilities, Inc. (WTRG) on April 22, 2026, clearing the first regulatory hurdle in the path toward combining the two utilities.
The transaction will create a combined company that will serve more than 4.7 million water and wastewater customer connections and over 740,000 gas connections, making it the largest regulated water and wastewater utility in the United States. The all‑stock, tax‑free merger will give American Water shareholders 69 % ownership and Essential shareholders 31 %, and the combined entity will operate under the American Water name and be headquartered in Camden, New Jersey.
The merger is expected to close by the end of the first quarter of 2027, subject to customary closing conditions such as Hart‑Scott‑Rodino clearance and other regulatory approvals. The Kentucky PSC approval is the first regulatory clearance, and the companies have confirmed that they will maintain current customer rates and honor all existing union contracts.
Business leaders highlighted that the combination will enhance operational efficiencies, expand service capabilities across a broader geographic footprint, and provide a platform for continued investment in critical infrastructure. The merger also triggers a strategic review of American Water’s non‑water and non‑wastewater businesses and of Essential’s Peoples Natural Gas unit.
American Water celebrated its 140th anniversary in 2026, and Essential Utilities continues to operate under the Aqua and Peoples brands. The merger aligns with both companies’ long‑term growth strategies and positions the combined entity to deliver reliable, affordable water services to a larger customer base.
"This combination brings together two industry leaders united by our shared mission to provide safe, clean, reliable, and affordable water and wastewater services. Our enhanced scale and operational efficiency will support continued investment in critical infrastructure and superior customer service." – John C. Griffith, President and CEO of American Water
"Throughout Essential's nearly 140‑year history, we have consistently led with purpose to shape a future rooted in sustainability, innovation, resilience, and best‑in‑class service for our customers. We are confident that the combined company will build upon a longstanding track record of delivering safe and reliable services and be better positioned to solve today's challenges while creating a sustainable future." – Christopher H. Franklin, Chairman and CEO of Essential Utilities
"Beyond 2026, we are looking forward to closing our announced merger agreement with Essential Utilities, which we are expecting to complete by the end of the first quarter of 2027, subject to obtaining all required regulatory approvals. The merger will enhance the scale of our company, combining two highly complementary businesses with significant growth potential that will benefit all stakeholders." – John Griffith, President and CEO of American Water
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