PORT DEPOSIT, MD, July 29, 2010 -- Artesian Water Maryland, a subsidiary of Artesian Resources Corporation, announced today that the Maryland Public Service Commission (PSC) has approved the Company's agreement to acquire the water assets of the town of Port Deposit.
Artesian has operated Port Deposit's water system under contract since April 2009 and announced in December that it had reached an agreement to purchase the town's water assets. The agreement required the review and approval of the Maryland PSC.
"We look forward to continuing to provide the very best water service to the town and people of Port Deposit," said Artesian President and CEO Dian C. Taylor. "Our expertise, developed during our more than 100 years of providing water service to customers on the Delmarva Peninsula, will enable us to efficiently operate the town's water system and ensure its safety and reliability. As always, we back our technical expertise with award-winning customer service."
The acquisition includes a water treatment facility with a capacity of up to 500,000 gallons per day, a Susquehanna River water appropriation permit, a 500,000 gallon ground storage tank, and water mains. The agreement also provides for the transfer of the town's water service rights for the service area that not only encompasses the existing 280 customers but also several adjacent tracts of land including the Bainbridge property, a 1,200-acre former U.S. Navy facility, which has the potential to be developed for 2,800 residential homes as well as for office, commercial, and educational uses.
With the addition of the Port Deposit system and the Susquehanna River appropriation, Artesian can provide further assurance of reliable supply from multiple sources in the designated Cecil County growth corridor. Artesian Water Maryland already provides water to the Town of Elkton as well as the Mountain Hill area in the western part of the county that includes the Principio Business Park and communities of Carpenters Point and Whitaker Woods. In addition, Cecil County has granted Artesian water and wastewater franchises in the eastern part of the county.
Artesian's investment in water and wastewater infrastructure in Cecil County's growth corridor will help the county to manage the rapid growth expected in the area. Cecil County is projected to add several thousand new residents and many businesses to its growth area during the next several years as a result of the Base Realignment and Closure Act (BRAC), which has mandated the relocation of thousands of military and civilian personnel to nearby Aberdeen Proving Grounds.
Artesian Water Maryland Inc. is a subsidiary of Artesian Resources Corporation. Artesian Water Company, the principal subsidiary, is the oldest and largest investor-owned public water utility on the Delmarva Peninsula, and has been providing water service since 1905. Artesian Resources is a member of the small-market Russell 2000® Index and has paid a common stock dividend for 71 consecutive quarters.