Speaking before a conference of the Mid-Atlantic Regulatory Utility
Commissioners in Hershey, Pennsylvania, Aqua America, Inc. (NYSE:WTR)
Chairman and CEO Nicholas DeBenedictis said today that private water
utilities can play a large and beneficial role in addressing the
deteriorating state of the nation’s water infrastructure.
During his remarks, DeBenedictis cited the Environmental Protection
Agency’s estimate of $335 billion needed for repairs and replacement of
transmission pipes, storage and treatment equipment, and other projects
required to protect public health and to ensure compliance with the Safe
Drinking Water Act (SDWA).
"Aqua America has been addressing the aging water infrastructure
situation for decades,” said DeBenedictis. "We have the ‘shovel-ready’
projects that EPA cites as necessary to ensure SDWA compliance.” Aqua
America spent $1.2 billion on water quality and infrastructure projects
during the five year period 2004 through 2008. "Progressive regulatory
programs like the Distribution System Improvement Charge in Pennsylvania
and the Quality Infrastructure Project Surcharge in Illinois promote the
continuation of these important investments,” said DeBenedictis.
Regulatory policies that incent reinvestment in infrastructure coupled
with access to capital markets, including low interest loans (tax-exempt
and state revolving loan funds), have helped Aqua America maintain a low
cost of debt capital (below five-and-a-half percent). Aqua Pennsylvania,
Inc., Aqua America’s largest operating subsidiary, currently has an A+
corporate credit rating from Standard & Poors—a rating Aqua America
believes is currently enjoyed by only one-in-four American companies.
"Access to low-interest financing will help Aqua continue its long-term
strategy of investing in infrastructure improvements to enhance future
reliability and service for our customers,” said DeBenedictis.
Aqua America, Inc. is a publicly traded water and wastewater utility
holding company with operating subsidiaries serving approximately three
million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas,
New Jersey, New York, Indiana, Florida, Virginia, Maine, Missouri and
South Carolina. Aqua America is listed on the New York Stock Exchange
under the ticker symbol WTR.
This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including the Company’s continuation of its strategy for infrastructure
improvements, the impact of infrastructure improvements on service to
customers, the impact of regulatory programs on the Company's
infrastructure investments and the role of private water utilities in
addressing the nation's water infrastructure. There are important
factors that could cause the actual results to differ materially from
those expressed or implied by such forward-looking statements including
among others, the company’s ability to access low-interest and
tax-exempt financing programs; the company’s ability to realize the
benefits from low-interest or tax-exempt financing; the effect of the
low-interest financing on the company’s interest expense; the company’s
ability to successfully complete its infrastructure projects; general
economic business conditions; changes in regulations or regulatory
treatment; availability and cost of capital; and other factors discussed
in our Annual Report or Form 10-K for the fiscal year ended December 31,
2008, which is on file with the SEC. We undertake no obligation to
publicly update or revise any forward-looking statement.
WTRF
