American Water, the largest regulated water and wastewater utility company in the United States, is interested in purchasing the City of Rocky Mount's water and wastewater utilities for a proposed $175 million. 

Discussion about its acquisition was brought up at a September city council work session, and next steps would include public engagement and seeking community input. 

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The City of Rocky Mount maintains control of its own electricity, natural gas, water, wastewater (sewer), refuse, recycling, and stormwater utilities. 

The company has regulated operations in 14 states and says it serves roughly 14 million people.

A representative from the company assured city council members that no current water utility employees would be terminated as a result of this potential purchase. Current utility rates would remain unchanged as well, and would be regulated by the North Carolina Utilities Commission.

"They would go to work on Friday with a Rocky Mount shirt, and they'd get a new shirt and start work for American Water on Monday," the rep said.

The presentation comes several months after the city council voted to raise utility rates across electric, gas, sewer and water rates by about 15%. 

"I have serious concerns about turning such an important public resource over to a private company," wrote Rocky Mount city council member Charles Roberson. "But as a public servant, I have thousands of bosses: the people of Rocky Mount. My responsibility is to listen, ask the hard questions, examine our aging infrastructure and history of deferred investment, and understand the long term costs and benefits of both public and private ownership."

American Water's representative claimed that an independent engineering report of the city's water system would require more than $200 million in investment over the next five years to keep it updated and functional. 

Previous sewer system concerns

In 2024, WRAL reported that in the span of 5 days, the city of Rocky Mount had 14 sanitary sewer overflows, releasing more than 1.2 million gallons of raw sewage into the Tar River and connecting bodies of water.

The city pointed to significant rainfall from Storm Debby as the cause for the overflows.

At the time, Rocky Mount said in a public notice that sanitary sewer overflows are common in North Carolina, but they're not supposed to be.

Dr. Lee Ferguson, an associate professor of civil and environmental engineering at Duke University, said aging infrastructure, growing population and extreme storm events are contributing causes of the overflows in NC. 

Water and Sewer Division

The city's Water and Sewage Division is responsible for the supervision and maintenance of around 504 miles of water distribution and 425 miles of sanitary sewer collection system mains.

The water distribution system has a total storage capacity of 10 million gallons. The sanitary sewer collection system consists of 5,500 manholes and 36 sewer lift stations.

Financial troubles

The city of Rocky Mount has faced well-documented financial struggles, and is being monitored by the state. Top state leaders say the city has made "good progress" climbing out of those struggles.

The increased utility rates are part of Rocky Mount's plan to dig itself out of financial distress. The decision has been largely scrutinized by city residents after three people died this summer after their power was disconnected by the city for failure to pay the utility bill in full.