ANSONIA, Conn., Jan. 17, 2002 -- Birmingham Utilities Inc. today announced that it has filed an application with the Department of Public Utility Control in Connecticut to approve the formation of a holding company.
The name of the holding company will be "BIW Limited". Currently, Birmingham Utilities, Inc. stock trades on the American Stock Exchange under the symbol BIW.
John S. Tomac, president of Birmingham Utilities, said the company's strategy to expand business operations, would present many opportunities if the operation of that business were separated from the current regulatory framework.
"This will allow the company the managerial, structural and financial flexibility necessary to meet challenges in the competitive marketplace," Tomac said.
Changing the corporate structure so that unregulated activities are not conducted in concert with regulated activities would provide more definitive insulation of regulated company customers from actual or perceived risks associated with unregulated activities, Tomac said.
Birmingham Utilities, a regulated public service company will retain its name, and its plant, equipment, operation and management now utilized to provide regulated service to customers will still be in place. Tomac further noted that restructuring to a holding company system would have no adverse affect on the financial strength of the regulated company, and its ability to provide safe, adequate and reliable service to the public.
Birmingham Utilities is an investor-owned water company serving the cities of Ansonia and Derby, and a small portion of Seymour, CT.
