PROPOSED INFRASTRUCTURE INITIATIVE: OVERVIEW CITY OF HUNTINGTON & WEST VIRGINIA AMERICAN WATER
Upcoming Community Information Sessions
West Virginia American Water will host information sessions to share details about its proposed acquisition of the City of Huntington’s wastewater collection system and agreement to operate the wastewater treatment plant.
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Click here to find an information session near you and learn more about this potential collaboration to support Huntington's wastewater system.
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What’s Being Proposed and Why
The City of Huntington is considering a strategic infrastructure initiative with West Virginia American Water to address aging sewer infrastructure, limited local funding capacity, and ongoing challenges with flooding and regulatory compliance.
Under a customized hybrid structure, West Virginia American Water would acquire and invest in the wastewater collection system, which is the underground pipes and related equipment that carry sewage from homes and businesses to the wastewater treatment plant. The City would retain ownership of the wastewater treatment plant, major lift stations, floodwall, and all stormwater assets. West Virginia American Water would be responsible for operating, maintaining, and upgrading the wastewater collection and treatment system, while the City remains responsible for the floodwall and stormwater systems. No transaction would occur without approval by Huntington City Council and the Public Service Commission of West Virginia (PSC).
Details of the Proposal
What West Virginia American Water would acquire: The wastewater collection system (pipes, manholes, and related equipment).
What the City retains: The wastewater treatment plant, major lift stations, floodwall, and all stormwater infrastructure.
Who operates the system: West Virginia American Water would operate the collection system and the City‑owned treatment facilities under an operating agreement.
Oversight: Regulatory review and rate-setting would remain with the PSC.
Customer Impacts & Protections
Rate transition: Customers would start at approximately 75% of West Virginia American Water’s standard sewer rate, with a gradual rate increase to West Virginia American Water’s full rate by 2031. This closely mirrors the City’s already-approved rate increases and avoids sudden bill jumps. Any future rate changes require PSC approval.
Affordability programs: West Virginia American Water offers PSC-approved low-income discounts (20%-40% discounts for qualifying households) plus bill-assistance grants and payment plan options. Many low-income residents would pay less than under the City’s current sewer rates.
Employees
All existing Huntington Sanitary Board employees will receive an offer of employment with West Virginia American Water, receiving pay and benefits aligned with our current workforce. The aim of this collaboration is to ensure continuity in operations and retain local expertise.
Benefits to the City
Upfront proceeds: West Virginia American Water would purchase the system for $75 million. After retiring existing debt on the system, the City would retain approximately $50 million in net flexible proceeds to meet community needs.
New ongoing tax revenue: As a private company, West Virginia American Water pays taxes. Under this sale, the sewer system becomes taxable, generating new annual revenue for the City.
Debt service support: West Virginia American Water would make annual payments to cover wastewater-related debt service for the assets the city retains.
Focus on priorities: The sale of the sewer system would free up City resources for floodwall improvements, stormwater mitigation, and economic development.
Infrastructure Investment
Near-term upgrades: West Virginia American Water provides a commitment to perform priority capital work identified within the City and required to meet environmental compliance.
Dedicated investment: West Virginia American Water will invest approximately $65 million over the next five years in the wastewater collection system, relieving the City of the financial burden, regulatory liability, and operational risk associated with maintaining aging infrastructure and addressing the significant costs and consequences of deferred work.
Scale and speed: A mix of private capital and public funding accelerates improvements and reduces long-term risk, with total investment expected to meet or exceed current estimates over time.