EDMONTON, March 30 /PRNewswire/ - EPCOR Utilities Inc. received Arizona Corporation Commission (ACC) approval today for the acquisition of all outstanding shares of Chaparral City Water Company (Chaparral) of Fountain Hills.
EPCOR's wholly-owned subsidiary, EPCOR Water (USA) Inc., is acquiring Chaparral from American States Water Company for U.S. $35 million, including the assumption of approximately U.S. $6 million in long-term debt. The transaction was announced on June 8, 2010, and is subject to customary conditions including, among other things, regulatory approval by the ACC.
With ACC approval of the transfer share, EPCOR will take over operations of Chaparral when the two companies complete the transaction likely during the second quarter of 2011.
Chaparral is principally engaged in the purchase, production, distribution, and sale of water to about 13,000 customers in the Town of Fountain Hills and in a small portion of Scottsdale, Arizona.
"We have been looking forward to this announcement and are pleased that EPCOR can soon begin serving the customers of Fountain Hills. Our people have been working behind the scenes to ensure a seamless transition," said EPCOR President and CEO Don Lowry. "We bring the same commitment to excellence that exists in every community where EPCOR operates, and the same desire to be an active and contributing citizen of Fountain Hills."
Chaparral has 12 employees, who will continue to operate the utility.
In addition to its staff, Chaparral assets consist of water transmission and distribution systems, which include 184 miles of pipeline, together with services, meters, fire hydrants, wells, reservoirs with a combined storage capacity of 7.55 million gallons and a surface water treatment plant.
Upon closing, this will be EPCOR's first completed water acquisition in the U.S. On January 24, 2011, EPCOR announced it had entered into an agreement for the acquisition of 100% of the stock of Arizona American Water and New Mexico American Water, wholly owned subsidiaries of American Water Works Company Inc. The American Water Works transaction is subject to regulatory approvals in both states. EPCOR currently has a local presence in Arizona through its Phoenix office.
EPCOR is a trusted provider of safe, reliable and high-quality drinking water and wastewater services to more than one million people in over 70 communities in Western Canada and now Arizona. EPCOR owns and / or operates 24 water treatment and distribution facilities and 25 wastewater treatment and collection facilities.
About EPCOR Utilities Inc.
EPCOR's wholly owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada. EPCOR, headquartered in Edmonton, Alberta, is an Alberta Top 50 employer. EPCOR's website is www.epcor.ca
Certain information in this news release is forward looking and related to anticipated financial performance, events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. By their nature, such statements are subject to significant risks and uncertainties, which could cause EPCOR's actual results and experience to be materially different than the anticipated results. Such risks and uncertainties include, but are not limited to, operating performance, commodity prices and volumes, load settlement, regulatory and government decisions including changes to environmental and tax legislation, weather and economic conditions, competitive pressures, construction risks, availability and cost of financing, foreign exchange risks, availability of labour and management resources and the performance of partners, contractors and suppliers.
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SOURCE EPCOR Utilities Inc.