ANSONIA, CT, September 24, 2001 — Birmingham Utilities, Inc. announced today that it has consummated its transaction with the State of Connecticut Department of Environmental Protection (DEP), and has received $4,338,000 for the sale of 322 acres in Seymour, Connecticut.
This property borders Holbrook and Cemetery Road. John S. Tomac, the Company's President said, "The net gain on this transaction will approximate $2,300,000, of which $2,100,000 will be recognized in the current year." The remainder of the gain, he noted, will be recognized within a three-year period as allowed by the Connecticut Department of Public Utility Control (DPUC).
Tomac further noted that this property was initially under contract for sale with Toll Brothers, a Pennsylvania developer; however, the DEP used its right under Connecticut Law to purchase this property. The proceeds from this sale will again be used to improve the Company's utility infrastructure.
These improvements will allow for the operation of a more efficient water system. System reliability and water quality will both improve as a result of these improvements. Customers will not be burdened by numerous rate increases as these improvements are being made, and shareholders will benefit as a result of the sharing allocation approved by the DPUC.
Lastly, Tomac noted that the Company has sold approximately 1800 acres over the last three years all of which remain in its natural state. These properties are all located throughout the Valley towns of Ansonia, Derby, and Seymour.
