The acquisition of the recently built water and wastewater systems is the seventh growth venture announced by PSC this year and the first for Consumers Illinois Water Company.
Due to the complexity of running the water and wastewater systems, Ivanhoe requested that Consumers Illinois Water Company operate the systems and will transfer ownership and full responsibility once final approval by the Illinois Commerce Commission is received. Approval is anticipated before the end of the year. The original cost of the water system is approximately $2 million.
"During the past five years PSC has completed more than 50 acquisitions, allowing the company to grow rapidly and become one of the largest investor-owned water utilities in the United States," PSC Chairman Nicholas DeBenedictis said.
Consumers Illinois Water Company President Terry Rakocy said, "There are literally thousands of small water companies in the Midwest that are in need of professional management and environmental oversight. The PSC family of companies, including Consumers Illinois Water Company, stand ready to assume responsibility and ownership of the smaller water and wastewater facilities, as it makes sense for both parties from economic and environmental standpoints."
The Ivanhoe acquisition is the seventh growth venture PSC has announced this year for the entire company, which has operations in Illinois, Pennsylvania, Ohio, Maine and New Jersey. The other growth venture announcements made by PSC this year were
* January 2000 - Consumers New Jersey Water Company was awarded a three-year contract to provide meter reading, billing and cash remittance services to the Winslow Township municipal water system in Camden County which provides water and wastewater services to approximately 30,000 residents.
* April 2000 - PSW's wastewater division purchased the Twin Hills wastewater system that serves approximately 750 residents in West Pikeland Township, Chester County.
* May 2000 - PSW purchased the Fulmor Heights water system that serves approximately 1,000 residents in Hatboro Borough, Montgomery County.
* June 2000 - PSC's Consumers Ohio subsidiary merged with Applegrove Water Company, which serves approximately 2,600 residents in Plain Township and the City of North Canton, both in Stark County, Ohio.
* August 2000 - PSC's Consumers Ohio subsidiary acquired the Summit County water system, serving approximately 4,200 residents in the City of Green.
* August 2000 - PSW purchased the White Horse Village retirement community water system that includes 500 residences and a 100-bed hospital in Edgmont Township, Delaware County.
SOURCE: Philadelphia Suburban Corporation