HERSHEY, Pa., Aug. 29, 2002 -- The Pennsylvania Public Utility Commission (PUC) on Thursday approved the proposed transaction of Pennsylvania-American Water Company's parent company, American Water Works Company, Inc., by RWE AG/Thames.
"We are extremely pleased with the Public Utility Commission's decision," said Robert M. Ross, PAWC president and CEO. "The Commission conducted a thorough examination of the transaction between American Water Works and RWE/Thames, and determined the merger to be in the best interest of our customers.
"The associates of Pennsylvania-American look forward to working with our new partners in meeting the needs of our customers today and in the years to come," said Ross. "Pennsylvania-American has always placed a strong emphasis on providing the highest quality water and service, an excellent value to our customers. This partnership will only enhance and strengthen our ability to serve the interests of our customers and associates.
"Pennsylvania-American will continue to be strongly committed to preserving the environment, being a good corporate neighbor by participating in local events, and adding value to the communities in which we operate," he said. "Management decisions regarding customer service, water treatment and distribution will continue to be made at the local level as they always have. The same group of professionals who are operating our treatment facilities, monitoring water quality and performing service calls to our customers today will be responsible for carrying out these functions once the transaction is complete."
In addition, Pennsylvania-American Water Company will continue to be regulated by the Pennsylvania Public Utility Commission, Pennsylvania Department of Environmental Protection and the U.S. Environmental Protection Agency.
American Water Works first announced that it agreed to be purchased by RWE for approximately $7.6 million in cash and assumed debt, on September 17, 2001. Under the agreement, RWE will purchase all the outstanding shares of American Water Works at a price of US$46 per share in cash. The transaction, which requires the approval of other state regulatory agencies, is expected to be completed in the first six months of 2003.
About Pennsylvania-American: Pennsylvania-American provides reliable, quality service to over 2 million people in the Commonwealth. In total, the Company owns and operates 38 water treatment facilities, three wastewater plants and more than 8,000 miles of pipeline to serve customers in 357 communities in 35 counties. Pennsylvania-American, with the support of its parent company, American Water Works, has the technical capabilities of a nationwide network and the local knowledge to provide the highest quality water with personal service.
About American Water Works: American Water Works Company is the largest publicly traded U.S. corporation devoted exclusively to the business of water. Its 6,500 associates provide water, wastewater and other related services to 15 million people in 27 US states and three Canadian provinces. More information can be found on the web at www.amwater.com.
Source: Pennsylvania-American Water Company
