BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE: WTR) Chairman and CEO Nicholas DeBenedictis
said that the $250 million the company's Pennsylvania subsidiary is
investing in water infrastructure is not only restoring aging water
systems, but is also creating and sustaining local living wage jobs. The
comments were made today at the Urban Land Institute of Philadelphia's
conference Water, Water Everywhere? Anywhere? Who's Going to Pay?
In his remarks DeBenedictis said that America's water infrastructure
problem is big enough that no single entity is going to solve it. "I
believe the problem will be resolved by both private and public
utilities. Aqua America is in the enviable financial position of being
able to fund its capital programs despite the economy. Specifically here
in Pennsylvania, Aqua Pennsylvania has been able to use its strong
balance sheet to access the capital markets at reasonable rates so that
we can continue our capital investment," said DeBenedictis. "Often times
municipal officials, particularly those in elected positions, struggle
with decisions to raise rates and keep the water and wastewater systems
financially sound because rate increases are unpopular and there are
competing interests including funding for police, fire and education."
DeBenedictis said that Aqua Pennsylvania's capital program has
concentrated on replacing aging water mains. He credited the company's
progress in this area to the Pennsylvania Public Utility Commission
Distribution System Improvement Charge, which has resulted in a
reduction in lost water, fewer service interruptions, and minimized the
amount of traditional rate requests. "Accounting for just pipe work, our
capital program has generated between 270 and 320 full-time equivalent
jobs in each of the last two years. If we add our plant work, the number
of jobs can be increased by as many as 50 full-time equivalent jobs," he
explained. "These contracts are held by local companies, providing
living wage jobs to local residents."
With investor-owned utilities, the improvements are paid for with
ratepayer dollars and shareholder equity—not tax dollars. Citing his own
company as an example he explained that, "Our low cost of debt and low
operating cost structure has allowed Aqua Pennsylvania to invest more
than three quarters of a billion dollars in infrastructure improvements
over the last five years. We have the economies of scale, technological
expertise and the access to low-cost capital to support capital programs
of the magnitude necessary to take on a key role in solving this
nation's water and infrastructure problems. Despite the size of Aqua
Pennsylvania's three quarter billion dollar investment, the majority of
our customers still pay about a penny per gallon for quality water
delivered directly to their taps.
To put the need for water and wastewater infrastructure into context,
DeBenedictis referred to the U.S. Environmental Protection Agency (EPA)
Drinking Water Infrastructure Needs Survey and Assessment, which
estimates a 20-year capital investment need of $334.8 billion for public
water systems. He also referenced a January 2009 news release issued by
the American Society of Civil Engineers (ASCE) titled Failing
Infrastructure Cannot Support A Healthy Economy, in which the
organization graded the nation's drinking water and wastewater systems a
D- and estimated an annual shortfall of at least $11 billion to replace
aging facilities, which are near the end of their useful life, and to
comply with existing and future federal water regulations.
Aqua America, Inc., which is celebrating its 125th
anniversary this year, is a publicly traded water and wastewater utility
holding company with operating subsidiaries serving approximately three
million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas,
New Jersey, New York, Indiana, Florida, Virginia, Maine, and Georgia.
Aqua America is listed on the New York Stock Exchange under the ticker
symbol WTR.
This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, the Company's ability to continue to fund its
capital program and the impact of infrastructure improvements on
service. 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; housing and customer growth trends; unfavorable weather
conditions; the success of certain cost containment initiatives; the
extent to which rate increase requests are granted and the timing of
rate awards; changes in regulations or regulatory treatment;
availability and the cost of capital; disruptions in the credit markets;
the success of growth initiatives; and other factors discussed in our
Annual Report on Form 10-K for the fiscal year ended December 31, 2010,
which is on file with the SEC. We undertake no obligation to publicly
update or revise any forward-looking statement.
WTRF
Aqua America, Inc.
Donna Alston
Director, Communications
610-645-1095
dpalston@aquaamerica.com
Source: Aqua America, Inc.
News Provided by Acquire Media
