Connecticut Water Service Inc. has agreed to sell a conservation easement on a former well field to the town of Windsor Locks, a deal that could generate about $1 million in income this year for the water utility.
Meanwhile, Clinton-based Connecticut Water reported first-quarter net income fell 35 percent to $1.1 million, or 13 cents a share, from earnings of $1.7 million, or 20 cents a share, a year earlier.
First-quarter revenues declined 1.5 percent to $13.4 million from $13.6 million last year.
The utility said a 3.4 percent falloff in household water usage and the timing of the second part of a 2007 rate hike cut into revenues.
The easement covers about 200 acres in several parcels on South Center Street from which the utility once drew water below ground, according to a copy of the sale agreement filed with securities regulators.
Windsor Locks has agreed to pay $2 million for the easement, giving the town sole control over whether the property is conserved or developed. Accounting for local taxes that would have been due on the property and other expenses, the utility said it expects to net about $1 million on the sale.
The state Department of Public Utility Control must approve the sale, the company said.
