Aqua Pennsylvania to Welcome New Garden Township as First Municipal Acquisition Using Fair Market Valuation Legislation
June 14 2017 - 1:21PM
Business Wire
Aqua America, Inc. (NYSE: WTR) today announced its largest
subsidiary, Aqua Pennsylvania, received approval from the
Pennsylvania Public Utility Commission to purchase the wastewater
assets of New Garden Township, serving approximately 2,100 customer
connections in southeast Pennsylvania’s Chester County.
Aqua’s application was the first that the PUC has considered
since the state enacted Act 12, commonly referred to as fair market
valuation legislation.
“We’re proud that Aqua is the first to have an acquisition
approved by the PUC under this new legislation,” said Aqua America
CEO Christopher Franklin.
The new law allows companies like Aqua to pay a fair market
amount for municipal water and wastewater systems, benefitting
local governments, customers, and the environment. Prior to FMV
legislation, utilities were often limited to including only the
original depreciated cost into their rate base, which became a
regulatory barrier to a sale. Now, Aqua and other regulated
utilities can leverage compliance expertise, purchasing power and
operational efficiencies to benefit local systems’ infrastructure
and service.
“This purchase is all part of Aqua’s efforts to do our part to
strengthen wastewater infrastructure for communities in the states
we serve, which means improved service and environmental
stewardship for generations to come,” Franklin said.
With the new legislation, Aqua is focused on balancing fair
price for systems, making important infrastructure improvements and
ensuring reasonable rates for its service. Aqua paid $29.5 million
for the New Garden system.
“We’re thrilled to welcome New Garden Township residential and
business customers to the Aqua family, and look forward to
providing them the highest level of service and value,” Franklin
said. “We hope more communities take advantage of the benefits this
new legislation can bring.”
According to Franklin, Aqua expects to grow its customer base
1.5 to 2 percent in 2017.
About Aqua America
Aqua America is one of the largest U.S.-based, publicly traded
water utilities and serves nearly 3 million people in Pennsylvania,
Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and
Virginia. Aqua America is listed on the New York Stock Exchange
under the ticker symbol WTR. Visit AquaAmerica.com for more
information, or follow Aqua on Facebook at
facebook.com/MyAquaAmerica and on Twitter at @MyAquaAmerica.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others: the company’s ability to grow its customer
base 1.5 to 2.0 percent in 2017, and the ability of the company to
acquire additional wastewater systems. There are important factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements including:
general economic business conditions, the successful integration of
the customers and the facility, the ability to improve customer
service and environmental stewardship, the success of the company’s
growth efforts including its ability to utilize Act 12, 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
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170614005952/en/
Aqua America, Inc.Brian Dingerdissen, Investor
Relations610-645-1191BJDingerdissen@AquaAmerica.comorStacey Hajdak,
Communications610-520-6309M:
267-294-1866SMHajdak@AquaAmerica.com
Aqua America (NYSE:WTR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aqua America (NYSE:WTR)
Historical Stock Chart
From Apr 2023 to Apr 2024