Aqua to provide lower wastewater rates, commits $7.5 million for
capital investments
BRYN MAWR, Pa. & MANTENO, Ill.--(BUSINESS WIRE)--Jul. 5, 2018--
Aqua America Inc. (NYSE: WTR) and the Village of Manteno, Illinois
announced today they have completed the acquisition of the village’s
wastewater system, which serves more than 9,000 people through
approximately 3,800 wastewater connections. Under the agreement,
approved by the Illinois Commerce CommissionMay 31, Aqua Illinois
purchased the system for $25 million.
Aqua has committed to investing more than $7.5 million in wastewater
system upgrades over the next ten years to continue enhancements already
initiated by the village. The company is also planning other future
investments to improve reliability, ensure adequate capacity for growth,
and protect receiving streams through new and innovative treatment
techniques.
“Aqua Illinois is happy to be able to provide the residents and
businesses of Manteno with quality wastewater services, reasonable rates
and excellent customer service,” said Craig Blanchette, president of
Aqua Illinois. “We have provided our award-winning water service to the
village since 2007, and our company has been providing water and
wastewater utility service throughout Illinois for more than 130 years,
serving more than 250,000 people in 13 counties throughout the state.
Our staff has extensive industry experience, and we look forward to
serving Manteno for decades to come.”
Aqua America Chairman and CEO Christopher Franklin noted the continued
opportunity he sees in the municipal market.
“We are excited by the momentum we are gaining in reaching agreements
with municipal systems,” said Franklin. “This purchase is all part of
Aqua’s efforts to do our part to strengthen infrastructure for
communities in the states we serve, which means improved compliance,
service and environmental stewardship for generations to come.”
In addition, Manteno Mayor Tim Nugent outlined several benefits to the
sale.
“We are very happy to continue to work with Aqua. The sale of our
wastewater system allows the village to reduce costs to our homeowners
and still maintain the sale proceeds in an investment account,” said
Nugent. “Our citizens will see an immediate, positive impact on their
monthly expenses, as the village eliminates each resident’s garbage
collection fee of $16.55 per month for the coming year. This will save
each homeowner almost $200 per year this year and more in the years to
come as garbage rates rise. This transaction locks in Manteno’s stable
financial future for generations.”
Aqua Illinois provides water and wastewater service to approximately
250,000 people in 13 counties.
Including the Village of Manteno, Aqua America has five fair market
value asset purchase agreements in place. Other agreements are with
Cheltenham, East Bradford, Limerick and New Garden townships in
Pennsylvania. A settlement agreement with Limerick is before the
Pennsylvania Public Utility Commission, and the New Garden commission
order is on appeal to Pennsylvania Commonwealth Court. When it completes
these acquisitions, the company will welcome approximately 23,000 new
customer connections to the Aqua family.
About Aqua
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 statement
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 invest capital in the system over the
next ten years. 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 company's ability to fund needed infrastructure; changes
in regulations or regulatory treatment; availability and access to
capital; the cost of capital; disruptions in the credit markets; and
other factors discussed in our Annual Report on Form 10-K and our
Quarterly Report on Form 10-Q, which are filed 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180705005561/en/
Source: Aqua America Inc.
Aqua America Inc.
Dan Lockwood
Communications
O:
610.645.1157
M: 856.981.5497
DMLockwood@AquaAmerica.com
or
Brian
Dingerdissen
Investor Relations
O: 610.645.1191
BJDingerdissen@AquaAmerica.com
