GENEVA, OH, Dec. 21, 2004 (BUSINESS WIRE) -- Aqua America Inc.'s Ohio subsidiary has completed the sale of the Geneva water system assets to the city of Geneva, Ohio, for $4.9 million.
The city and Aqua Ohio Inc. have been in litigation regarding procedural issues and the cost of the water system since 1999. This sale resolves the city's appropriation actions and establishes a new partnership between the Aqua Ohio and the city.
The sale agreement provides for a smooth transition, including a two-year operating contract totaling $270,000 under which Aqua Ohio will continue to operate and maintain the system, while also performing and receiving extra compensation for routine and emergency operations and maintenance.
"We are not in the business of selling water systems, as a matter of fact, we are a leader in acquiring small systems. However, in a situation such as Geneva where it is in Aqua America's best financial interest, and the best public policy interest of a municipality, we believe a sale represents a win-win situation," said Aqua chairman and CEO Nicholas DeBenedictis.
Aqua America Inc. is the largest U.S.-based publicly-traded water utility, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina.