Aqua America Inc. (NYSE: WTR) announced today the Pennsylvania Public
Utility Commission has approved a joint settlement agreement previously
reached between Aqua and the state Office of Consumer Advocate in June,
that now allows Aqua Pennsylvania to close its purchase of Limerick
Township’s wastewater assets. The Limerick system serves approximately
5,400 wastewater connections in Montgomery County.
The transaction, which is expected to occur in the next several weeks,
falls under the recently enacted Act 12, which allows municipalities
that own water and wastewater systems to sell their systems to regulated
public utilities at fair market valuation.
Act 12 encourages consolidation in the fragmented water and wastewater
industry. Consolidation allows resources to be shared among a larger
service area which ultimately benefits utility customers. Through the
new legislation, Aqua and other regulated utilities can leverage
compliance expertise, purchasing power gained through economies of
scale, and operational efficiencies to benefit local systems’
infrastructure and service.
This approval demonstrates the collaboration of all the parties involved
and their long-standing commitment to providing safe and reliable water
and wastewater service at affordable pricing in the commonwealth,
according to Aqua America Chairman and CEO Christopher Franklin.
“Pennsylvania officials have been mindful of the important combination
of protecting customers’ interests and incentivizing consolidation of
nearly 2,500 water utilities that exist in the state,” Franklin said.
Including Limerick, Aqua America has five fair market value asset
purchase agreements in place, with Cheltenham, East Bradford and New
Garden townships in Pennsylvania, and the Village of
Manteno in Illinois, which closed July 5. When it completes these
acquisitions, the company will welcome approximately 23,000 new customer
connections to the Aqua family.
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.
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 acquire additional municipally owned
water and 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
facilities, 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
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