JEFFERSON COUNTY, W.Va. (DC News Now) — Growth in West Virginia’s eastern panhandle has led to acquisition of Jefferson Utilities by West Virginia American Water, a move which has been approved by the State Public Service Commission.

The $27 million deal will affect more than 3,900 customers, some in Berkeley and Morgan counties, as well.

Increases in rates are expected as improvements are made to the water system infrastructure. But those hikes on customer bills are expected to be offset by a growing customer base.

“Where that rate starts to increase the customer will see an adjustment to their bill,” Stephanie Reel, with West Virginia American Water, said. “They will see how the new tier structure looks.”

West Virginia American Water is investor-owned and serves 587,000 customers.