November 12, 2018

CT Water 3Q profits rise 27.5%

Photo | Twitter via CT Water
Photo | Twitter via CT Water
A Connecticut Water truck.

Connecticut Water Service Inc. said its third quarter profits jumped 27.5 percent largely due to higher revenues from rate increases approved by Connecticut and Maine regulators.

For the three months ended Sept. 30, the clinton utility netted $13.7 million, or $1.15 a diluted share, up 27.5 percent from the $10.7 million, or 92 cents a diluted share, it recorded in the year-ago period.

Total revenues climbed 17.2 percent to $39.3 million, up from $33.5 million in the third quarter last year.

Connecticut Water said the revenue uptick was mainly driven by a rate increase approved by Connecticut Public Utilities Regulatory Authority (PURA) in August. The Maine Water Co., a subsidiary of Connecticut Water, was approved for a rate increase by the Maine Public Utilities Commission (MPUC) in Dec. 2017. The utility also said it benefited from other surcharges.

The earnings report surfaces as Connecticut Water shareholders are slated to meet Friday to vote on its $1.1 billion all-cash buyout offer from California's SJW Group. Its board of directors unanimously support the $70-per-share acquisition.

The proposed deal, which requires approval from shareholders, PURA and MPUC, is on pace to close in the first quarter of 2019, said Connecticut Water CEO and President David C. Benoit.

The utilities originally agreed to a $750 million merger, with Connecticut Water shareholders receiving approximately $61.68 per share. But the California utility improved its offer again in August amid competing offers from Eversource Energy and others.

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