Connecticut Water Posts 2018 Earnings

Connecticut Water Service, Inc. announced Friday income of $16.7 million, or $1.40 earnings per basic common share, for 2018 on total revenues of $124.8 million.

Total revenues include revenues generated by the Company’s three business segments: Water Operations, Service and Rentals, and Real Estate.

Non-GAAP Adjusted Net Income, which excludes merger and acquisition costs, for 2018 increased from the prior year by $2.2 million, according to the report.

The improved results in 2018 were primarily driven by increased revenues in base rates in Connecticut and Maine as well as increases in Water Infrastructure and Conservation Adjustment and Water Infrastructure Charge surcharges, according to the report.

The increased base rate revenues are associated with a settlement agreement between The Connecticut Water Company and the Office of Consumer Counsel that was approved by the Connecticut Public Utilities Regulatory Authority and a rate increase in The Maine Water Company’s Biddeford and Saco division that became effective in December 2017, the report indicates.

The improved revenues were partially offset by increased operating expenses and depreciation, according to the report.

"We are pleased with our 2018 results, which reflect our continued focus on operational excellence and providing world-class service to the families and communities we are privileged to serve," said David C. Benoit, president and CEO of CTWS.

Benoit added, "We are committed to continue our strong track-record of infrastructure investment, exceeding customer expectations and being a partner in the community. We believe those efforts will be bolstered through our planned combination with SJW Group."

As previously announced, on Nov. 16, 2018, CTWS received shareholder approval of the merger of CTWS and SJW Group. As further disclosed, after a thorough review conducted by the management and boards of CTWS and SJW Group, and with the support of their respective Connecticut regulatory counsel, the companies decided to file new applications with PURA and MPUC in connection with the proposed merger. The companies expect that the new applications will be filed during the second quarter of 2019.

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