Aqua Pennsylvania, Inc., an operating subsidiary of Aqua America Inc. (WTR), announced that it has concluded its 2014 capital investment program worth $217 million. Around $200 million of this amount was utilized throughout the year to upgrade its distribution and collection infrastructure, and treatment facilities. This includes major chunks invested in development activities at its Southeastern Pennsylvania, Shenango, Roaring Creek and White Haven operating divisions.
Aqua Pennsylvania is primarily focused replacing its aging and smaller-diameter cast iron mains with new cement-lined ductile iron mains. In addition, the company is improving treatment facilities and replacing collection system mains in an attempt to upgrade its wastewater systems.
Aqua America’s largest subsidiary, Aqua Pennsylvania, operates in 31 counties across the state of Pennsylvania and serves approximately 1.4 million customers. It invested over $950 million in infrastructure development between 2009 and 2013. This has substantially reduced incidences of main breaks during winter months.
Aqua America’s infrastructure development programs, which cover upgrading water mains, treatment plants, tanks, boosters and service lines, have been commendable. Of a total of $325 million allocated for 2014, the company invested $220.7 million during the first nine months in improving its regulated assets. Aqua America had previously announced that it will invest an additional $1 billion in upgrading infrastructure.
On Dec 11, another unit of the company, Aqua New Jersey, announced that it has allocated $6.6 million in 2014 for replacing aging water infrastructure in several counties, including Mercer, Camden, Warren and Sussex.
These initiatives will enable Aqua America to provide reliable services to its customers, while complying with government legislations and public safety.
Aqua America’s peers, American Water Works Company, Inc. (AWK) and Connecticut Water Service Inc. (CTWS), also continue to invest substantially in improving their operations.
Aqua America currently has a Zacks Rank #2 (Buy). Another equally well-ranked industry peer is American States Water Company (AWR).
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