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>>> Aqua America introduces new name as it completes acquisition, PA customers will see no changes


The Mercury

1-27-20

By Donna Rovins


https://www.pottsmerc.com/business/aqua-america-introduces-new-name-as-it-completes-acquisition-pa/article_41e2bdf6-3ec5-11ea-b949-9ba794722e8d.html


BRYN MAWR — Aqua America Inc., the parent company of water and wastewater company Aqua Pennsylvania, will be changing its name, effective Feb. 3. The new company will be known as Essential Utilities Inc.

The change comes as one of the final steps in Aqua America’s purchase of Peoples — a Pittsburgh-based natural gas distribution company. The acquisition of Peoples — for an estimated $4.275 billion — has been moving through the regulatory process since October 2018.

The acquisition received its final regulatory approval Jan. 16 — in a 4-to-1 vote from the Pennsylvania Public Utility Commission.

Once the transaction closes — a step that is expected within the next couple of weeks, according to an Aqua spokesman — Peoples will become a subsidiary of Essential, which will be headquartered in Bryn Mawr.

Chris Franklin, Aqua’s current chairman and CEO, will continue his leadership roles at the new company.

“The team has gone through an extensive exercise to explore our purpose and promise for our customers and communities, employees and shareholders, and Essential captured the essence of what we aim to be for our stakeholders,” Franklin said in a statement. “Water and natural gas are vital services that play an important role in sustaining and enhancing life. As stewards of these services, we have a responsibility to protect the public and our employees through operational excellence and integrity in all we do.”

For Aqua Pennsylvania’s water and wastewater customers — including more than 346,000 customers in Berks, Chester, Delaware and Montgomery counties — there will be no changes, according to Aqua spokesman Daniel Lockwood.

While the parent company name, stock ticker and website will change Feb. 3, there is no plan to re-brand the subsidiary companies.

“Aqua Pennsylvania will still be the company serving our water/wastewater customers in PA, bills will still come from them,” Lockwood said in an emailed response to questions.

In addition to unveiling the new name, Aqua has also announced the members of the executive leadership team that will report to Franklin once the acquisition with Peoples closes.

The Essential leadership team includes:

• Richard Fox, executive vice president, chief operating officer

• Christopher Luning, executive vice president, general counsel

• Matthew Rhodes, executive vice president, strategy and corporate development

• Daniel Schuller, executive vice president, chief financial officer

• Ruth DeLost-Wylie, senior vice president, business transformation

• Susan Haindl, senior vice president, chief administrative officer

• Christina Kelly, senior vice president, chief human resources officer

• Brian Dingerdissen, vice president, chief of staff, investor relations and communications

• Kimberly Joyce, vice president, regulatory and government affairs

"These individuals are proven leaders in their areas of expertise, staunchly committed to the success of our company’s mission. The team has my full confidence and includes those who I most trust and rely on to deliver exceptional customer and employee experience and shareholder value,” Franklin added.

In addition, Colleen Arnold, currently Aqua’s deputy chief operating officer, will lead the water and wastewater utilities for all states as president. Joseph Gregorini, currently Peoples chief operating officer, will lead the natural gas utilities for all states as president. Both will report to Fox.

In October 2018, Aqua announced its intention to purchase Peoples in an all-cash transaction estimated at $4.275 billion, creating a new infrastructure company it said would be uniquely positioned to have a powerful impact on “improving infrastructure reliability, quality of life and economic prosperity in the areas it serves.”

The acquisition, according to Lockwood, brings together more than 260 years of combined expertise and service.

“Together, Aqua and Peoples will offer employees and shareholders exciting new opportunities of added value, continue to provide customers with the essential services they need, and provide communities with the infrastructure improvements required to thrive,” he wrote in the emailed response.

He added that the acquisition makes sense for several reasons, including the fact that both companies are infrastructure companies with expertise and experience in replacing and renewing underground pipelines.

“In many ways, the businesses are very similar, aside from the product that’s inside those pipelines,” Lockwood wrote.

The joint settlement agreement with the Pennsylvania Public Utility Commission includes commitments regarding infrastructure replacement, employment levels, rate credits and enhancements in a variety of areas, including customer service and reliability, universal service, financial governance, and retail competition.

Among those commitments, according to Aqua, are accelerated natural gas distribution pipe replacement, confirmation that all employee and jobs are maintained, commitment to keep the headquarters the same, increased customer service commitments and a $10 million rate credit.

There will be no need for the company’s shareholders to exchange stock certificates in connection with the corporate name change.

The stock ticker for Aqua America, currently WTR, will change to WTRG on Feb. 3 and the new website — http://www.essential.co — will become active on that date. In addition, Essential will have a new company tagline: “Providing natural resources for life.”

Aqua serves more than 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia.

Across the region, the company has: 272 wastewater and 1,915 water customers in Berks County; 4,456 wastewater and 79,139 water customers in Chester County; 2,040 wastewater and 142,303 water customers in Delaware County; and 15,994 wastewater and 110,432 water customers in Montgomery County.

Peoples serves approximately 740,000 homes and businesses in Western Pennsylvania, West Virginia and Kentucky.

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