PSC subsidiary buys prison water supply
Philadelphia Suburban Corp. announced that its Pennsylvania operating subsidiary purchased at year's end the water supply for the State Correctional Institution at Waymart (SCI), positioning the company to serve more than 1,300 inmates in Canaan Township, Wayne County, for $727,000.
BRYN MAWR, Pa., Jan. 3, 2003 -- Philadelphia Suburban Corp. announced that its Pennsylvania operating subsidiary purchased at year's end the water supply for the State Correctional Institution at Waymart (SCI), positioning the company to serve more than 1,300 inmates in Canaan Township, Wayne County, for $727,000.
The company has already begun construction of an 8,500-foot pipeline that will connect the existing SCI water source to a new Federal prison, also in Canaan Township, which is currently under construction and will house approximately 1,500 inmates.
In a land transfer specifically authorized by state legislation, PSC has purchased 390 acres of land, a two million gallon reservoir and two wells that serve the state prison. PSC has also secured a $1.5 million low interest PennVest loan to upgrade the facilities and provide an interconnecting water system between the state prison and the new federal facility.
Capital repairs are being made to the pumps, motors, electrical wiring and chlorination equipment. With these repairs, both SCI and the new Federal prison will be in compliance with all state drinking water standards.
"This acquisition is a win-win for everyone involved," said PSC Chairman Nicholas DeBenedictis. "By purchasing the water source and making the necessary improvements, we are able to spare the state prison more capital expenditures and reduce their operating expenses while delivering a quality water supply to the SCI population. Taxpayers will save money through our use of a low-interest loan to make the improvements. For PSC, the benefit is an additional 2,800 'customers.'"
DeBenedictis also pointed out the fact that the company will realize operating cost efficiencies by connecting the existing state prison water system to that of the new Federal prison and sharing a common source of supply.
This acquisition is the twenty-seventh growth venture announced by the company in 2002. Two are mergers - Pennichuck and portions of AquaSource, Inc. - which have been announced but have not yet closed.