Clinton-based Connecticut Water Co. announced that the board of directors approved a $25.8 million capital spending plan for 2010.
About half, or $13 million, of the 2010 capital spending plan targets pipeline replacement.
Replacement projects planned for 2010 will occur in the north-central Connecticut towns of Coventry, East Windsor, Ellington, Suffield, Windsor Locks, Vernon, South Windsor, and Stafford, as well as in other towns in Connecticut Water’s market area.
In 2009, the company will have spent about $10 million on replacing pipes. The replacement projects that will be completed in 2009 are in Enfield, Ellington, East Windsor, Vernon, Stafford, South Windsor, and Windsor Locks.
“We remain committed to enhancing water quality, reliability of service, and conservation,” President and CEO Eric W. Thornburg said. “Replacing old pipe reduces the amount of water lost to leakage, conserving not only water but the power and chemicals used to treat that water. It also enhances water quality, and creates construction jobs through local contractors in the communities we serve.”
Also, the company’s board of directors declared a quarterly cash dividend of 22.75 cents per share payable on Dec. 15 for shareholders of record as of Dec. 1. The dividend remains unchanged from the previous quarter and represents an annualized dividend of 91 cents per share. The annual dividend yield at Friday’s stock market closing price is about 4 percent.
Connecticut Water has paid quarterly dividends on common stock since its founding in 1956 without interruption or reduction and has increased dividend payments for each of the last 40 years.
Connecticut Water’s board also declared a quarterly cash dividend of 20 cents per share on Preferred A shares payable on Jan. 18 for shareholders of record as of Jan. 4 and a quarterly cash dividend of 22.5 cents on Preferred 90 shares on Feb. 1 for shareholders of record as of Jan. 18.
The Connecticut Water Co. supplies water to more than 86,000 customers, or 300,000 people, for residential, commercial, industrial and municipal purposes in 54 towns in Connecticut. It is the largest domestic investor-owned water utility in New England. The company owns and operates 20 separate water systems, five surface water treatment plants and more than 80 groundwater sources.
