Member News

PA American Water Names New External Affairs Manager

Terry M. Maenza, Pennsylvania American Water

Maenza joins Pennsylvania American Water from Aqua America, Inc., where he served as senior communications specialist for the Bryn Mawr, Pennsylvania-based water and wastewater utility holding company with operations in 13 states. Previously, he served in marketing, communications and public relations roles with Unisys Corp. in Blue Bell, Pa.; West Lawn Graphics in Sinking Spring, Pa.; Berks Products Corp. in Reading, Pa.; and The Eddie Mahe Company in Washington, D.C.

Connecticut Water Completes Acquisition of Birmingham Utilities’ Eastern Division

Connecticut Water Service, Inc. announced that its public water utility subsidiary, The Connecticut Water Company, has completed the acquisition of the Eastern Division of Birmingham Utilities, Inc., that was previously announced last June and approved by the Connecticut Department of Utility Control in November 2007. Connecticut Water is acquiring 2,200 customers serving a population of nearly 7,500 in 15 Eastern Connecticut towns in an area where the company already has water system operations. Connecticut Water paid $3.5 million for Birmingham’s Eastern Division and is forecasting approximately $1.5 million in annual revenues from the additional customer base resulting from the acquisition of the Eastern Division.

New England Water Utility Service, Inc. (NEWUS), the services and rentals subsidiary of the Company, acquired the H2O Services, Inc., an affiliate of Birmingham. H2O Services has nearly 50 contracts for water system operation and maintenance in Eastern Connecticut and these water system contracts will complement the service offerings of NEWUS.

“Our employees began working with Birmingham’s Eastern Division employees, customers and town leaders six months ago to ensure they are part of Connecticut Water from day one,” said Eric W. Thornburg, Connecticut Water’s president and CEO. “We will continue to work with community leaders and customers to build upon the investments and infrastructure improvements that Birmingham made in the region to provide quality service to the customers and earn a fair return for our shareholders.”

The Ansonia-Derby operations of Birmingham were acquired by the South Central Connecticut Regional Water Authority of New Haven, Conn.

Aqua Florida Hires Rendell

Aqua Utilities Florida, Inc., announced that Troy Rendell will join the company as its chief liaison to the Florida Public Service Commission. Rendell comes to Aqua from the PSC where he spent more than 20 years, 14 of which he served as public utilities supervisor. Rendell's hire is the third made by the company from a state regulatory agency.

In his new position, Rendell will be the regulatory face of the company in Tallahassee on PSC-related matters and will manage all regulatory filings associated with the company's growth and rates structure. Rendell's primary responsibility is to provide the PSC with the proper and timely information they need to regulate Aqua's operations in Florida. "Troy's financial background combined with his 20 years of regulatory experience will bring our regulatory effort to a new level in Florida," said Christopher Franklin, president of Aqua's southern operations. "I have great confidence in Troy's ability to represent Aqua in Tallahassee."

Aqua's announcement follows the hiring, in 2007, of two former Florida Department of Environmental Protection regulators. Patrick Farris joined the company as manager of environmental compliance and Tricia Williams was hired as manager, engineering. The hiring of these former regulators underscores the company's commitment to make regulatory and environmental compliance its top priority.

Aqua currently serves nearly 117,000 residents in Florida. "We have spent the second half of 2007 building a strong leadership team and improving environmental compliance and operations throughout the many small water and wastewater systems we've purchased," explained Franklin. "Additionally, we've invested more than $30 million in capital improvements for things like pipes, plants and associated assets across the state since 2003. While there remains much to be done, our capital investment along with an experienced management team better positions us to resolve many of the issues we face in Florida."

Southwest Water Realigns Services Group Along Customer Lines

Southwest Water Company announced that it has realigned its Services Group to better service the division's distinct customer groups, enhance efficiencies and generate cost savings. "This strategic realignment optimizes our Services Group's ability to serve its three core customer sets; the Texas Municipal Utility Districts (MUDs), other municipal clients that we serve through Operations and Maintenance contracts, and the company's Utility Group," said Mark Swatek, Southwest Water chief executive officer and chairman. "With this new structure, our Services Group will be able to better serve the unique demands of each customer base, focus its business development efforts and eliminate redundancies."

The company has flattened and simplified this division's management structure. Each of the three customer groups will have a business leader reporting directly to David Stanton, Southwest Water's chief operating officer. As part of the realignment, the company eliminated 12 management/supervisory positions and 27 support positions, or approximately 3 percent of the Services Group employee base. The company will recognize a pretax charge of approximately $0.8 million in its 2007 fourth quarter as a result of these workforce reductions, or $0.02 cents per diluted share after tax.

The realignment will be an ongoing process and additional charges may be recognized through the first part of 2009 as the company continues its initiative to consolidate, update and upgrade all underlying communications and information technology systems.

Pennsylvania American Appoints New Director

Pennsylvania American Water announced the appointment of Jon Delano to its board of directors. He brings a distinguished career in journalism, public service, law and academics to Pennsylvania American Water. Delano is a journalist for KDKA-TV (CBS), serving as the station's award-winning money and politics editor, and he is a columnist for the Pittsburgh Business Times and a contributor for Pittsburgh Magazine. He is also an adjunct professor at Carnegie Mellon University's H. John Heinz School of Public Policy and Management.

"As a member of our board of directors, Jon's talents and experience will help provide stewardship and oversight of management and operations to ensure that the company is properly aligned with its mission of providing high-quality and reliable water service," said Kathy Pape, president, Pennsylvania American Water. "Jon has a reputation throughout Pennsylvania for even-handed analysis of political and governmental issues, and we look forward to working with him."

Prior to Delano's journalism career, he served Congressman Doug Walgren as chief of staff from 1977 to 1991. His first-hand Washington, D.C., experience led to his appointment in 1995 at Carnegie Mellon University.

California American Names New General Manager

California American Water announced the appointment of Craig Anthony as General Manager of its Central Division, effective January 28, 2008. The Central Division includes water and wastewater systems on the Monterey Peninsula and its surrounding areas, the community of Chualar in southern Monterey County, the community of Felton in Santa Cruz County and contract water operations for the City of East Palo Alto.

Anthony most recently served as General Manager for the Pebble Beach Community Services District (PBSD.) During his two years at PBCSD, he became familiar with local community and water issues. Prior to that position, he worked as Fire Chief for Riverside County, where he was responsible for the management of 46 county fire stations and 31 city stations. He has additionally been employed as Deputy Director of Resources and Acting Deputy State Fire Marshal for the California Department of Forestry and Fire Protection. He received his Bachelor of Science in forestry from Humboldt State University.

"We feel very privileged to welcome Mr. Anthony to our team," said California American Water President, Kent Turner. "He brings a wealth of experience and ability to the challenges and opportunities facing our Central Division."

American Water Canada Receives Award

American Water Canada, the non-regulated products and services division of American Water in Canada, announced it has received the Management Innovation Award from the Ontario Public Works Association (OPWA). This award recognizes an individual, team or organization for the development, management and implementation of a creative idea, device, process, or system that enhances the goal of public works in serving the public and protecting the environment. American Water Canada, the contracted operating authority, and the Elgin Area and Lake Huron Water Systems were honored for the unique implementation of a Drinking Water Quality Management Standard (DWQMS).

The DWQMS is an innovative system that focuses on continuous improvement of the quality of service and is aimed at reducing exposure to any associated hazards in the management and delivery of critical water supplies. The new delivery model not only allows for precise audits, improvements and strives to improve service levels, but recognizes the importance of the partnership between system owner, operating authority and the municipalities.

"The unique implementation of the Drinking Water Quality Management System for the Lake Huron and Elgin Area Water Supply Systems reflects the successful partnership approach adopted by American Water Canada and the joint Board's of Management," said Jeff McIntyre, vice president of American Water Canada. "I am delighted that the Ontario Public Works Association has recognized the benefits associated with this approach."

"We are extremely proud to receive such a prestigious award from the Ontario Public Works Association," said Andrew Henry, manager of Regional Water Supply for the Lake Huron and Elgin Area Water Systems. "This innovative management system was developed to integrate quality management into the operation of all municipal drinking water systems in Ontario and has clearly set a standard for excellence."

Aqua Indiana and the City of Fort Wayne Negotiate Transition

Aqua Indiana, Inc., and the City of Fort Wayne jointly announced that the two have reached an agreement that allows for a smooth transition of what is commonly known as Aqua's "North System" (Perry, Washington, Cedar Creek and St. Joseph townships in Allen County — a portion of which is located within the city) on February 12, 2008, and resolves the long-standing disputes between both parties.

"We are pleased to have been able to reach this agreement as it will allow for a smooth transition for our 9,200 North System water and 1,700 sewer customers as well as to know that the City will give our employees preferred treatment in job placement following the transition of ownership," said Aqua Vice President Bill Etzler. "Our customers and our employees have remained of paramount concern throughout the negotiation of this settlement and we are satisfied that both will be properly handled by the City."

As part of the agreement, Fort Wayne City Utilities will contract with Aqua to operate the north system for three months as the transition in operations takes place. The operations contract could be extended for an additional period. Aqua will continue to operate from its current headquarters.

Although Aqua is still contesting the final price of the water and wastewater system, the agreement allows for the parties to coordinate regulatory actions while allowing the change in ownership of the north system to proceed.

"This settlement will not affect our 11,700 water customers and 11,700 sewer customers in Aqua's 'Southwest' service area in Wayne, Lafayette, Lake and Aboite townships in Allen County (a portion of which is located within the City), and Jefferson Township in Whitley County," said Etzler. "Indiana remains one of Aqua America's, our parent company's, fastest-growing states. We remain committed to our Southwest customers and will continue to make the prudent investments necessary to maintain environmental compliance and provide them with quality water and service."

"This settlement is in everyone's best interest," said Director of City Utilities Kumar Menon in announcing the agreement with Aqua. "Our agreement on an acquisition date should help to relieve concerns of many of the Aqua north system customers. The City can now focus on providing Aqua north customers with the benefits of City services collaboratively with Aqua to ensure the transition is smooth, service is uninterrupted and that system integrity is maintained. This is good for the north system customers and good for the City."