Two Utilities, One Goal: Cleaning Up PFAS

American Water and Essential Utilities win shareholder approval for a $63B merger, creating a unified platform to fund PFAS treatment nationwide

12 Feb 2026

A major reshuffle is underway in the US water business. On February 10, 2026, shareholders of American Water and Essential Utilities overwhelmingly approved an all-stock merger that would create a company valued at about $63 billion.

The vote was not close. Roughly ninety-nine percent of American Water shares represented at the special meeting backed the issuance needed to complete the deal, while nearly ninety-five percent of Essential Utilities votes cast supported the merger. That kind of margin signals something rare in utility land: broad investor agreement on a transformative bet.

The combined company would rank among the largest regulated water and wastewater utilities in the country, serving about 4.7 million connections across 17 states. The pitch is straightforward. Bigger scale, executives argue, will help fund the costly work now bearing down on utilities nationwide, from replacing lead service lines to installing treatment systems for PFAS, the stubborn industrial chemicals now at the center of new federal rules.

PFAS is a major driver of the math. American Water has added $2 billion to its 2026 to 2030 capital plan to meet compliance demands tied to the EPA’s PFAS rule. Company executives have pointed to a nine-year supply agreement with Calgon Carbon and said PFAS treatment could add as much as $50 million a year in operating costs.

Essential Utilities is also leaning hard into cleanup spending. The company has committed at least $450 million in PFAS-related capital projects, a sign that contamination treatment is no longer a side issue but a core part of utility strategy.

American Water President and CEO John Griffith said the merger would strengthen investment in critical infrastructure while supporting reliable service at reasonable rates. Critics are not buying the rosy version. Mary Grant of Food and Water Watch called the deal alarming and warned that concentrating control of an essential public health service in one for-profit company could come with real risks.

The shareholder votes clear an important hurdle, but the hardest part may still lie ahead. State regulatory reviews are expected to continue through the fourth quarter of 2026, with final approvals projected in late 2026 or early 2027 and the deal targeted to close by the end of the first quarter of 2027. Whether this becomes a model for financing water cleanup, or a cautionary tale about consolidation, is now up to regulators.