CLINTON, Conn., March 19, 2007 (PRIME NEWSWIRE) -- Connecticut Water Service, Inc. (Nasdaq:CTWS) has announced that its regulated water utility subsidiary, The Connecticut Water Company, has completed the acquisition of the Avery Heights Water System in South Windsor, Connecticut. The Avery Heights Homeowner's Association transferred the assets of the water system and its 216 customers at no cost to Connecticut Water.
On January 19, 2007, the Avery Heights Homeowners Association had applied to the Connecticut Department of Public Utility Control (DPUC) for approval to transfer its water systems assets to Connecticut Water. The DPUC determined that Avery Heights did not constitute a water 'company' and therefore DPUC approval was not required. This allowed the transfer of assets to proceed quicker than had been anticipated.
The Avery Heights water system, which had its own ground water sources, has experienced episodes of discolored water. Immediately following the completion of the acquisition, the Avery Heights system's existing sources of supply were disconnected and customers began receiving their water from Connecticut Water's distribution system through a $100,000 water main extension.
Eric W. Thornburg, President and CEO of Connecticut Water, notes that this acquisition fits the Company's strategy of serving our customers, shareholders, and employees. Mr. Thornburg states, "As the state's largest publicly traded water utility, we are in a position to improve service and water quality for our new customers at Avery Heights, while earning a return for our shareholders on our infrastructure investment, and our existing customers benefit from having a larger customer base to spread fixed costs. In addition, acquisitions also help to create advancement opportunities for our dedicated skilled employees." Mr. Thornburg notes that in 2006, Connecticut Water achieved an 85 percent customer satisfaction rating, which is considered world-class; and has had the lowest customer complaint rate among Connecticut's major utilities for four years in a row.
This is the second acquisition completed by Connecticut in less than six months. The Company completed the acquisition of the 123 customer South Coventry Water Supply Company last Fall. Excluding Avery Heights and South Coventry, Connecticut Water has acquired 12 water systems over the past dozen years and the additional customers from these acquisitions represent about 14 percent of the company's current base.
Connecticut Water Service, Inc. is the largest, domestic-based, investor-owned water utility in New England. It provides water to over 83,000 or 286,000 people customers in 41 towns in Connecticut, as well as providing water-related services under contract to municipalities and companies.
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This news release may contain certain forward-looking statements regarding the Company's results of operations and financial position. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties, which could cause the Company's actual results to differ materially from expected results.
The Connecticut Water Company is subject to various federal and state regulatory agencies concerning water quality and environmental standards. Generally, the water industry is materially dependent on the adequacy of approved rates to allow for a fair rate of return on the investment in utility plant. The ability to maintain our operating costs at the lowest possible level while providing good quality water service is beneficial to customers and stockholders. Profitability is also dependent on the timeliness and amount of rate relief and numerous factors over which we have little or no control, such as the quantity of rainfall and temperature, industrial demand, financing costs, energy rates, tax rates, and stock market trends which may affect the return earned on pension assets, and compliance with environmental and water quality regulations. The profitability of our other revenue sources is subject to the amount of land we have available for sale and/or donation, the demand for the land, the continuation of the current state tax benefits relating to the donation of land for open space purposes, regulatory approval of land dispositions, the demand for telecommunications antenna site leases and the successful extensions and expansion of our service contracts. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.