Connecticut Water to Buy Ellington Acres
The Connecticut Water Company, a wholly owned subsidiary of Connecticut Water Service, Inc. has signed a definitive agreement to purchase the Ellington Acres Company, which is a regulated water utility company that provides water service to approximately 750 customers, or approximately 2,300 people in the town of Ellington, Conn.
Under the terms of the agreement, Connecticut Water will purchase all issued and outstanding shares for $1,495,000.
Connecticut Water serves more than 36,000 customers in Ellington and its surrounding towns in northern Connecticut and its water system is near Ellington Acres' system. Eric W. Thornburg, president and chief executive officer of Connecticut Water, said "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. This regional approach to long-term water system planning is more sustainable and is in the best interest of CWC and EAC customers."
The companies' respective boards of directors have approved the acquisition, which is subject to approval by the Connecticut Department of Public Utility Control. An application is expected to be filed with the state within the next 30 days and that it will take approximately four months from that date to get a decision.
Connecticut Water Co. serves nearly 300,000 people in 54 towns in Connecticut.