This is an updated version of an earlier report.
Maine has approved Connecticut Water Service Inc.’s $19.8 million buyout of Biddeford and Saco Water Co., which will double its customer base there, authorities say. CT Water’s third-quarter net income grew largely on its Maine expansion.
CT Water announced Friday that formal approval of its pending deal, first disclosed back in July, came this week from the Maine Public Utilities Commission.
Under the deal, Biddeford and Saco’s 16,000 customers in Biddeford, Saco, Old Orchard Beach and Scarborough would be absorbed into CT Water’s Maine Water Co. division.
CT Water bought Maine Water, formerly Aqua Maine, in January and currently serves some 16,000 customers, for a total of 50,000 water drinkers, in 17 communities throughout the Pine Tree State.
Maine’s approval of the deal came with several caveats. One is that Maine Water create a customer advisory panel that will work the utility to identify where and how much to spend on new water lines and other infrastructure improvements.
The utility also agreed to meet regularly with Maine’s municipal leaders to plot annual capital spending and address operational issues.
In addition, CT Water pledged to protect and preserve company land on the Saco River and committed not to jeopardize the river’s use as a public water resource.
Maine Water President Judy E. Wallingford said the utility had no problem agreeing to any of that.
“The agreement aligns well with Maine Water’s core values …,” Wallingford said in a statement.
For three months ended Sept. 30, the Clinton water utility that is Connecticut’s largest in private hands netted $6 million, or 67 cents a diluted share, up from $4.3 million, or 26 cents a share, netted a year earlier.
Third-quarter revenue was $26.5 million vs. $22.2 million a year ago.
