2008-09-05 21:10:04 -
www.amwater.com - American Water Kevin Tilden, 619-206-8099 Kevin.Tilden@amwater.com www.amwater.com California American Water completed its transfer of ownership of the Felton water system to the San Lorenzo Valley Water District (SLVWD).
Under terms of the agreement, SLVWD paid $13.4 million for the operating assets of the water system that serves approximately 1,330 customers in Felton. The payment includes a $10.5
million cash payment to California American Water and the assumption by the District of $2.9 million in debt related to the Safe Drinking Water Bond Act used to build the Kirby Street water treatment plant and other facilities.
Additionally, California American Water donated all non-operating assets of the Felton water system to the SLVWD, including 250 acres of watershed land adjacent to Fall Creek State Park. The donation includes a deed restriction that the timber on the land will not be commercially harvested, preserving the land for water production, water supply and conservation.
"We received premium value to rate base for our operating assets and were able to protect the timberland for future generations," said Kent Turner, president of California American Water. "I also thank our employees, who always put the customers first and provided high-quality, reliable service from the time we acquired the Felton water system to the completion of this transfer. This process began with condemnation proponents predicting that a takeover would cost as little as $2 million and rates would be substantially reduced. Now, it is apparent that the costs were far greater, and recent media reports indicate the total cost to a customer's water bill, with bond repayments, will be about the same as what he or she had already been paying."
Former California American Water Customers in Felton should contact SLVWD at (831) 338-2153 for all routine and emergency customer service inquiries.
California American Water provides high-quality and reliable water and/or wastewater services to more than 630,000 people. In addition to its subsidiaries' regulated operations, American Water provides a variety of operation and maintenance services in Descanso and East Palo Alto, serving an additional 13,000 people.
California American Water is a wholly owned subsidiary of American Water (NYSE:AWK). Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs nearly 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15.6 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.
$13.4 Million for Felton Property, Watershed Land Donated
