American Water and Essential Utilities, Inc. reached a major milestone in their path toward consolidation today, as the Kentucky Public Service Commission (PSC) officially approved their proposed merger.
The decision marks the first state regulatory green light for the multi-billion-dollar all-stock transaction, which was originally announced in October 2025. The approval follows a resounding vote of support from shareholders of both utility giants during special meetings held earlier this year in February.
Once finalized, the merger will unite two of the nation’s most significant water, wastewater, and natural gas providers. The combined entity will boast a massive service footprint, including:
- 4.7 million water and wastewater customer connections.
- 740,000 gas customer connections.
- A total reach of approximately 19.5 million people across the United States.
The combined company will retain the American Water name and remain headquartered in Camden leveraging the scale of both organizations to improve operational excellence and customer affordability.
The timing of the approval is particularly symbolic for American Water, which is celebrating its 140th anniversary in 2026.
“Kentucky’s approval is a critical first step in bringing these two mission-driven companies together,” the companies noted in a joint statement. The merger is designed to enhance the “national size and scale” necessary to address aging infrastructure and evolving environmental regulations across the 14 states where American Water currently operates.
While the Kentucky PSC approval is a significant victory, the merger still faces several hurdles before reaching the finish line. The transaction is currently expected to close by the end of the first quarter of 2027, pending:
- Clearance under the Hart-Scott-Rodino Act.
- Regulatory approvals from additional applicable state public utility commissions.
- Completion of other customary closing conditions.
