BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America (NYSE: WTR) announced today that its Indiana subsidiary,
Aqua Indiana, will expand its wastewater service in Allen County through
a public-private partnership with the City of Fort Wayne in which Aqua
will treat part of the city's wastewater flow. Aqua Indiana today also
completed the sale of its drinking water system assets in southwest
Allen County to the City of Fort Wayne for $67 million, which comprises
$50.1 million in addition to $16.9 million the city already paid Aqua
for its water and wastewater system assets in the northern part of Fort
Wayne in a contested acquisition in 2008. The Indiana Utility Regulatory
Commission approved the sale and other related agreements between the
city and Aqua in October.
Aqua Indiana will continue to provide wastewater service to its current
customers in southwest Allen County and will begin treating more than
1.5 million gallons per day of wastewater from the city's sewer system
in western and southwestern Allen County. This flow volume is the
equivalent of gaining an estimated 10,000 sewer customers. The city and
Aqua Indiana will cooperate on wastewater master planning and the
establishment of efficient service boundaries. By the end of 2015, Aqua
expects to have invested approximately $15 million in its wastewater
collection system and treatment facilities in Allen County since the
beginning of this year.
"This transaction will benefit Fort Wayne, Aqua and the customers we
both serve," said Aqua America Chairman and CEO Nicholas DeBenedictis.
"We believe Aqua has received fair value for the long-contested water
and wastewater system assets, and we're pleased that both Aqua and the
city have resolved years of litigation. We look forward to working with
the city to enhance economic development, and we're proud that we'll
expand our wastewater operations in Allen County."
DeBenedictis said the sale will provide Aqua with more than $50 million
in cash that the company can reinvest in water and wastewater
infrastructure. The gain on sale will be recorded in Aqua America's
fourth-quarter financial results.
This release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995. There are
important factors that could cause actual results to differ materially
from those expressed by such forward-looking statements, including
Aqua's ability to invest capital as described in this release, Aqua and
the city successfully completing the public-private partnership 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
Aqua America
Gretchen Toner
Manager, Strategic Communications
O:
610-645-1175
M: 484-368-4816
GMToner@AquaAmerica.com
or
Brian
Dingerdissen
Director of Investor Relations
O: 610-645-1191
BJDingerdissen@AquaAmerica.com
Source: Aqua America
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