|Philadelphia Suburban Water to Buy Plumsock Water System|
|BRYN MAWR, Pa. (BUSINESS WIRE) - Philadelphia Suburban Water Company
(PSW) announced today that it has agreed to purchase the Plumsock at Willistown water
system in Willistown Township, Chester County from the development's homeowners'
association for $110,000.
The purchase price of the water system, that serves approximately 120 residents, includes the construction of a main extension to connect the community to PSW's main water system at West Chester Pike.
One of the primary reasons for the sale of the water system to PSW is improved fire flows for the upscale residential community.
"Their current stand-alone water system at Plumsock doesn't have the necessary storage to provide desired fire service," said Vice President, Corporate Development, Rick Hugus. "By connecting their system with ours, there will be increased flow and pressure for firefighting."
Including Plumsock, PSW has completed eight acquisitions and growth ventures this year (including three others in Chester County) which, along with natural system growth, increased PSW's customer count by over 4 percent in 1998.
PSC's largest pending acquisition this year; Consumers Water Company, was announced on June 29, 1998 and is presently going through the federal and state regulatory approval process.
Consumers Water Company owns water utilities with operations in Ohio, Illinois, Pennsylvania, New Jersey and Maine and serving 223,000 customers. Under the merger agreement, Consumers will become a wholly-owned subsidiary of PSC, making PSC the second largest investor-owned water company in the nation based on market capitalization.
While this merger represents a change from PSC's regional growth-through-acquisition strategy, the Company plans to continue to expand PSW's operations in southeastern Pennsylvania and complement that growth by implementing the same regional growth strategy in Consumers' markets.
PSC is the holding company for PSW, a regulated public utility that provides water to approximately one million residents in 96 municipalities in five suburban counties outside of Philadelphia. PSC is publicly-traded on both the New York and Philadelphia Stock Exchanges under the ticker symbol "PSC."