CLINTON, CT, July 23, 2008 -- The Connecticut Water Company (CWC), a wholly owned subsidiary of Connecticut Water Service Inc., has signed a definitive agreement to purchase the Ellington Acres Company (EAC). EAC is a regulated water utility company that provides water service to approximately 750 customers, or approximately 2,300 people in the town of Ellington, Connecticut. Under the terms of the agreement, Connecticut Water will purchase all issued and outstanding shares of EAC for $1,495,000.
Connecticut Water currently serves more than 36,000 customers in Ellington and its surrounding towns in northern Connecticut and its water system is in close proximity to that of EAC. Eric W. Thornburg, President and CEO of Connecticut Water, says this transaction will benefit the customers of EAC and CWC alike. He stated, "By interconnecting the EAC and CWC water systems, we can avoid significant capital expenditures for both companies that in the long-term will keep rates lower for CWC and EAC customers than if EAC had remained an independent company. This regional approach to long-term water system planning is more sustainable and is in the best interest of CWC and EAC customers." Thornburg added, "CWC has a dedicated customer service team, and experienced state certified water treatment and distribution system professionals that look forward to serving EAC customers."
The Boards of Directors of EAC and CWC have approved the acquisition, which is subject to approval by the Connecticut Department of Public Utility Control (DPUC). It is anticipated that an application will be filed with the DPUC within the next 30 days and that it will take approximately four months from that date before the DPUC issues its decision.
This is the second acquisition announced or completed by Connecticut Water this year. On January 16, 2008, Connecticut Water completed the acquisition of the Eastern Operations of Birmingham Utilities, which serves more than 2,300 customers.
Connecticut Water Company serves nearly 300,000 people in 54 towns in Connecticut.
###
