PSC Approves Unanimous Agreement and Grants Permission for Missouri-American Water to Acquire Neosho Water and Sewer Systems - pr-26-81

Press Release

FOR IMMEDIATE RELEASE -- June 24, 2026
Contact: Sarah Fontaine (573) 751-9300
PR-26-81

When considering whether to grant a CCN, the Commission takes into consideration criteria which includes (1) whether there is a need for the service, (2) whether the applicant is qualified to provide the proposed service, (3) whether the applicant has the financial ability to provide the service, (4) whether the applicant’s proposal is economically feasible and finally, (5) whether the service promotes the public interest.

In this case, the Commission found that the proposed agreement addresses this criterion. There is a need for service to the existing customer base in Neosho and there is a lack of another provider in the area. Missouri-American Water currently operates other utility systems. It has shown its financial ability to operate and improve the systems it currently owns. The project is economically feasible in that sufficient projected revenues will be enough to cover the cost of service and Missouri-American Water has backing from its parent company, American Water. Finally, the public interest requirement is met due to the ongoing need for service and the need for investment in replacing and repairing aging infrastructure in Neosho.

Key points and conditions of the agreement are as follows:

• Missouri-American Water is granted CCNs to provide water and sewer service in the approved service area;
• Existing Neosho water and sewer rates will remain in effect until changed through a future general rate case;
• Missouri-American Water must file tariff sheets and service area maps before closing on the assets;
• Missouri-American Water must notify the Commission when the transaction closes and provide status reports if closing is delayed;
• Missouri-American Water must provide customers with information regarding their rights and responsibilities and communicate details about the transition to company ownership;
• Customer service personnel must receive training regarding rates and rules applicable to Neosho customers;
• The Missouri-American Water must provide sample billing statements and ongoing customer service reporting to Commission Staff following the acquisition; and
• Missouri-American Water must maintain separate books and records for the Neosho systems in accordance with applicable accounting requirements.

The Commission also notes that Missouri-American Water currently provides water and/or wastewater service to approximately 509,000 customers in Missouri.

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