Aqua America’s Indiana Subsidiary Announces Public-Private Partnership to Expand Wastewater Service in Allen County & Compl...
December 04 2014 - 11:56AM
Business Wire
Aqua America (NYSE: WTR) announced today that its Indiana
subsidiary, Aqua Indiana, will expand its wastewater service in
Allen County through a public-private partnership with the City of
Fort Wayne in which Aqua will treat part of the city’s wastewater
flow. Aqua Indiana today also completed the sale of its drinking
water system assets in southwest Allen County to the City of Fort
Wayne for $67 million, which comprises $50.1 million in addition to
$16.9 million the city already paid Aqua for its water and
wastewater system assets in the northern part of Fort Wayne in a
contested acquisition in 2008. The Indiana Utility Regulatory
Commission approved the sale and other related agreements between
the city and Aqua in October.
Aqua Indiana will continue to provide wastewater service to its
current customers in southwest Allen County and will begin treating
more than 1.5 million gallons per day of wastewater from the city’s
sewer system in western and southwestern Allen County. This flow
volume is the equivalent of gaining an estimated 10,000 sewer
customers. The city and Aqua Indiana will cooperate on wastewater
master planning and the establishment of efficient service
boundaries. By the end of 2015, Aqua expects to have invested
approximately $15 million in its wastewater collection system and
treatment facilities in Allen County since the beginning of this
year.
“This transaction will benefit Fort Wayne, Aqua and the
customers we both serve,” said Aqua America Chairman and CEO
Nicholas DeBenedictis. “We believe Aqua has received fair value for
the long-contested water and wastewater system assets, and we’re
pleased that both Aqua and the city have resolved years of
litigation. We look forward to working with the city to enhance
economic development, and we’re proud that we’ll expand our
wastewater operations in Allen County.”
DeBenedictis said the sale will provide Aqua with more than $50
million in cash that the company can reinvest in water and
wastewater infrastructure. The gain on sale will be recorded in
Aqua America’s fourth-quarter financial results.
This release contains forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
There are important factors that could cause actual results to
differ materially from those expressed by such forward-looking
statements, including Aqua’s ability to invest capital as described
in this release, Aqua and the city successfully completing the
public-private partnership and other factors discussed in our
Annual Report on Form 10-K, which is on file with the Securities
and Exchange Commission. For more information regarding risks and
uncertainties associated with Aqua America’s business, please refer
to Aqua America’s annual, quarterly and other SEC filings. Aqua
America is not under any obligation — and expressly disclaims any
such obligation — to update or alter its forward-looking statements
whether as a result of new information, future events or
otherwise.
WTRF
Aqua AmericaGretchen TonerManager, Strategic CommunicationsO:
610-645-1175M: 484-368-4816GMToner@AquaAmerica.comorBrian
DingerdissenDirector of Investor RelationsO:
610-645-1191BJDingerdissen@AquaAmerica.com
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