UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8‑K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 13, 2016 (July 7, 2016)

Commission File Number 0-8084

Connecticut Water Service, Inc.
(Exact name of registrant as specified in its charter)

Connecticut
(State or other jurisdiction of
incorporation or organization)
06-0739839
(I.R.S. Employer Identification No.)
 
 
93 West Main Street, Clinton, CT
(Address of principal executive office)
06413
(Zip Code)

(860) 669-8636
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

þ     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c) )




Item 1.01      Entry into a Material Definitive Agreement

Entry into a New Term Loan Supplement

As previously reported on November 2, 2012, The Connecticut Water Company, a Connecticut corporation (“ CWC ”), the largest operating water utility subsidiary of Connecticut Water Service, Inc., a Connecticut corporation (“ CWS ” or the “ Company ”), and CoBank, ACB, a federally chartered instrumentality of the United States (“ CoBank ”), entered into a Master Loan Agreement dated October 29, 2012 (the “ MLA ”) pursuant to which CoBank originally agreed to make loans (each, a “ Loan ” and collectively, the “ Loans ”) to CWC from time to time, such Loans to be evidenced by the execution and delivery by each of CoBank and CWC of a Promissory Note and Supplement to the MLA.

CWC also delivered to CoBank four Promissory Notes and Single Advance Term Loan Supplements, each dated October 29, 2012. On March 5, 2013, CWC delivered an additional Promissory Note and Single Advance Term Loan Supplement to the MLA in which CoBank agreed to make an additional Loan to CWC in an aggregate principal amount of up to $14,550,000, with a maturity date of March 4, 2033. On June 1, 2016, CWC delivered an additional Promissory Note and Single Advance Term Loan Supplement to the MLA in which CoBank agreed to make an additional Loan to CWC in an aggregate principal amount of up to $30,000,000, with a maturity date of June 3, 2036. These six promissory notes are collectively referred to as the “Existing CWC Notes”.

The Loans made under the Existing CWC Notes are supported by a limited guarantee of payment by CWS in favor of CoBank pursuant to a Guarantee of Payment (Limited) by and between CoBank and CWS dated October 29, 2012, as amended on March 5, 2013 and further amended on June 1, 2016 (the “ CWS Guarantee ”), secured by CoBank’s statutory first lien interest on all of CWS’s equity ownership interest in CoBank.

On July 7, 2016, CWC delivered to CoBank an additional Promissory Note and Single Advance Term Loan Supplement in which CoBank agreed to make an additional Loan to CWC in an aggregate principal amount of up to $19,930,000, with a maturity date of July 7, 2036 (the “ July 2016 Note ”).

Under the July 2016 Note, CWC will pay interest on the Loan represented by the July 2016 Note at a fixed rate per annum of 4 and 4/100 percent (4.04%). Interest shall be calculated on the actual number of days such Loan is outstanding on the basis of a year consisting of 360 days. 

Additionally, on July 7, 2016, CWC delivered to CoBank a third amendment to the CWS Guarantee that added the obligations of CWC under the July 2016 Note to the obligations being guaranteed by CWS, subject to the aggregate limit of $1,000,000 (the “ Third Guarantee Amendment ”).

As described in Item 1.02 below, CWC used all of the proceeds of the Loan represented by the July 2016 Note to refinance certain of its outstanding debt securities.

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The above summary of the material terms of each of the July 2016 Note and the Third Guarantee Amendment is qualified in its entirety by reference to the July 2016 Note and the Third Guarantee Amendment, complete copies of which are attached hereto as Exhibit 10.1 and Exhibit 10.2 , respectively, and are hereby incorporated by reference.

Item 1.02      Termination of a Material Definitive Agreement

Repayment of CWC’s Outstanding 2009A Bonds

On July 8, 2016, CWC used all of the proceeds of the Loan represented by the July 2016 Note plus additional cash from CWC to complete the repayment in full of all principal, accrued interest, premiums, surcharges and other amounts owed by CWC pursuant to its remaining outstanding 5.10% Water Facilities Revenue Bonds (The Connecticut Water Company Project - 2009A Series) (the “ 2009A Bonds ”) issued through the Connecticut Development Authority (the “ CDA ”) (now known as Connecticut Innovations, Inc.) pursuant to a Bond Purchase Agreement among CWC, CDA and Edward D. Jones & Co., L.P., as underwriter, dated as of December 2, 2009, a Loan Agreement between CWC and CDA dated as of December 1, 2009 and an Indenture of Trust between CDA and U.S. Bank National Association, as Trustee, dated as of December 1, 2009.

The repayment in full by CWC of the remaining outstanding 2009A Bonds was approved by the Connecticut Public Utilities Regulatory Authority on May 11, 2016. Each of the above described agreements related to the 2009A Bonds has been terminated effective July 8, 2016.

Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 is incorporated herein by reference in response to this Item 2.03.

Item 8.01      Other Events

The Heritage Village Water Company

On July 8, 2016, the Company issued a press release announcing that the Company has filed its application with the Connecticut Public Utilities Regulatory Authority (“ PURA ”) for approval of its planned merger of a Company subsidiary with and into The Heritage Village Water Company (“ HVWC ”), which was previously announced on May 10, 2016 (the “Merger”). PURA approval is a required condition to closing of the Merger.

A copy of the Company’s press release dated July 8, 2016, announcing the submission of the Company’s application to PURA is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.


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On July 11, 2016, the Company posted a handout to its website related to the Company’s pending acquisition of HVWC. A copy of the Company’s handout is filed as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference.

How to Find Further Information

In connection with the Merger, the Company will be filing a registration statement on Form S-4 under the Securities Act with the SEC containing a proxy or information statement of HVWC that also constitutes a prospectus of the Company (the “ Statement/Prospectus ”) and other documents regarding the proposed transaction.

Before making any voting or investment decisions, we urge investors and security holders to read the Statement/ Prospectus (including all amendments and supplements thereto) and other documents filed with the SEC carefully and in their entirety when they become available, because they will contain important information about the Company, HVWC and the proposed Merger.
  
When available, copies of the Statement/Prospectus will be mailed to HVWC’s shareholders. Copies of the Statement/ Prospectus may be obtained free of charge at the SEC’s web site at www.sec.gov , or by directing a request to the Company’s Corporate Secretary, Kristen A. Johnson, at Connecticut Water Service, Inc., 93 West Main Street, Clinton, Connecticut 06413, or by telephone at 1-800-425-3985, ext. 3056, or on our website at www.ctwater.com . Copies of other documents filed by the Company with the SEC may also be obtained free of charge at the SEC's web site or by directing a request to the Company at the address provided above.
  
Participants in the Solicitation

The Company and HVWC and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the approval of the proposed Merger. Information regarding the Company’s directors and executive officers and their respective interests in the Company by security holdings or otherwise is available in its Annual Report on Form 10-K filed with the SEC on March 14, 2016 and its Proxy Statement on Schedule 14A filed with the SEC on March 31, 2016. Information regarding HVWC’s directors and executive officers and their respective interests in HVWC by security holdings or otherwise is available in HVWC’s Annual Report for 2014 filed with the PURA and available at the PURA’s website, www.ct.gov/pura . Additional information regarding the interests of such potential participants is or will be included in the Statement/Prospectus and registration statement, and other relevant materials to be filed with the SEC, when they become available, including in connection with the solicitation of proxies to approve the proposed Merger.

Cautionary Statements

This current report shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities

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laws of such jurisdiction. No offer or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.

Item 9.01      Financial Statements and Exhibits

The following documents are filed herewith as exhibits hereto:

(d)      Exhibits

10.1
Promissory Note and Single Advance Term Loan Supplement between The Connecticut Water Company and CoBank, ACB, dated July 7, 2016, is filed herewith.
10.2
Third Amendment to Guarantee of Payment (Limited) by Connecticut Water Service, Inc., dated July 7, 2016, is filed herewith.
99.1
Company press release dated July 8, 2016, is filed herewith.
99.2
Company handout related to The Heritage Village Water Company, is filed herewith.


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SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Connecticut Water Service, Inc.
(Registrant)

Date: July 13, 2016
By: /s/ David C. Benoit

David C. Benoit
Senior Vice President – Finance and
Chief Financial Officer



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EXHIBIT INDEX

Exhibit No.
Description
10.1
Promissory Note and Single Advance Term Loan Supplement between The Connecticut Water Company and CoBank, ACB, dated July 7, 2016, is filed herewith.
10.2
Third Amendment to Guarantee of Payment (Limited) by Connecticut Water Service, Inc., dated July 7, 2016, is filed herewith.
99.1
Company press release dated July 8, 2016, is filed herewith.
99.2
Company handout related to The Heritage Village Water Company, is filed herewith.




Loan No. RX1087T07
PROMISSORY NOTE AND
SINGLE ADVANCE TERM LOAN SUPPLEMENT

THIS PROMISSORY NOTE AND SUPPLEMENT (this “Promissory Note and Supplement”) to the Master Loan Agreement dated as of October 29, 2012 (the “MLA”) is entered into as of July 7, 2016, between THE CONNECTICUT WATER COMPANY, Clinton, Connecticut, a Connecticut corporation (the “Company”) and CoBANK, ACB , a federally chartered instrumentality of the United States (“CoBank”).
SECTION 1.    The Term Loan . On the terms and conditions set forth in the MLA and this Promissory Note and Supplement, CoBank agrees to make a loan to the Company in an amount not to exceed $19,930,000 (the “Commitment”). The Commitment shall expire at 12:00 noon (Company’s local time) on July 8, 2016, or on such later date as CoBank may, in its sole discretion, authorize in writing.
SECTION 2.    Purpose . The purpose of the Commitment is to refinance existing bond debt of the Company issued through the Connecticut Development Authority ("CDA") and identified on Exhibit A hereto (individually or collectively, the "Existing Debt").
SECTION 3.    Availability . Notwithstanding Section 2 of the MLA and provided that each of the conditions precedent set forth herein and in the MLA have been satisfied, the loan will be made available to the Company on a date to be agreed upon by the parties (the “Closing Date”) upon written request of an authorized officer of the Company. The loan will be made available in a single advance by CoBank wire transferring the proceeds of the loan to U.S. Bank National Association, as Trustee under Indenture of Trust from CDA to U.S. Bank National Association (the “Trustee”) dated December 1, 2009 (CDA $20,000,000 Water Facilities Revenue Bonds – The Connecticut Water Company Project – 2009A Series).
SECTION 4.    Interest . The Company agrees to pay interest on the unpaid balance of the loan at 4.04% per annum. Interest shall be calculated on the actual number of days the loan is outstanding on the basis of a year consisting of 360 days. Interest shall be: (1) calculated quarterly in arrears on the last day of each February, May, August, and November and on the final maturity date of the loan; and (2) due and payable quarterly in arrears by the 20th day of each March, June, September, and December and on the final maturity date of the loan.
SECTION 5.    Fees. INTENTIONALLY OMITTED.
SECTION 6.    Promissory Note. The Company promises to repay the unpaid principal balance and any unpaid accrued interest of the loan on July 7, 2036, or such later date as CoBank may, in its sole discretion, authorize in writing. In addition to the above, the Company promises to pay interest on the unpaid principal balance of the loan at the times and in accordance with the provisions set forth above. If any installment due date is not a Business Day, then such installment shall be due and payable on the next Business Day and, in the case of principal, interest shall continue to accrue thereon until paid.

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SECTION 7.    Prepayment. Subject to the broken funding surcharge provision of the MLA (Section 12 (A)), the Company may prepay all or any portion of the loan. Unless otherwise agreed, all prepayments will be applied to such balances, fixed or variable, as CoBank shall specify.
SECTION 8.    Security . Notwithstanding the provisions of the MLA, including, without limitation, Section 4(A) and (B) of the MLA, the Company’s obligations hereunder shall be unsecured, except that this Promissory Note and Supplement shall be guaranteed in accordance with Section 4(B) of the MLA and any related guaranty agreement.
SECTION 9.    Additional Conditions Precedent . In addition to the conditions precedent set forth in the MLA, CoBank’s obligation to make the loan is subject to the conditions precedent that CoBank shall have received each of the following (which, in the case of instruments and documents, must be in form and content acceptable to CoBank):
(A)    CDA Payoff Letter . A copy of a payoff letter or spreadsheet from the Trustee setting forth, as of the Closing Date, the unpaid principal balance of the Existing Debt, the interest accrued thereon, and any prepayment premiums, surcharges and other amounts owning by the Company for or on account of the Existing Debt (the “ Payoff Amount ”).
(B)    Immediate Funds. Immediately available funds in an amount equal to the difference (if any) between the amount of the Loan less the Payoff Amount (the “Additional CDA Payment”).
(C)    Guaranty Amendment . CoBank and Connecticut Water Service, Inc. shall have entered into an Amendment to the guaranty agreement in form and content acceptable to CoBank.
SECTION 10.    Additional Affirmative Covenants. In addition to the affirmative covenants set forth in the MLA, the Company agrees that: (A) if for any reason the funds remitted to the Trustee are insufficient to discharge all of the Company’s obligations to CDA for or on account of the Existing Debt, the Company will promptly make such additional payments to the Trustee as may be required to discharge such obligations in full; and (B) while this Promissory Note and Supplement is in effect and unless CoBank otherwise consents in writing, the Company will immediately, secure the Company’s obligations hereunder and, to the extent related hereto, the MLA as specifically provided in the Security, Guarantee(s) and Title Insurance Section (Section 4) of the MLA, in the event that the Company secures any of its obligations with another lender, bond holder or bond issuer, excluding liens granted in connection with purchase money indebtedness.
SECTION 11.     Counterparts and Electronic Delivery. This Promissory Note and Supplement may be executed in counterparts (and by different parties in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single agreement. In addition, this Promissory Note and Supplement may be delivered by electronic means.

(Signatures on Next Page(s))

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IN WITNESS WHEREOF , the parties have caused this Promissory Note and Supplement to the MLA to be executed by their duly authorized officers as of the date shown above.

CoBANK, ACB                     THE CONNECTICUT WATER COMPANY

By: /s/ Shannon Smith                      By: /s/ David C. Benoit                

Name: Shannon Smith                     Name: David C. Benoit                

Title: Assistant Corporate Secretary             Title: SVP – Finance and CFO            
















(Signature Page Promissory Note and
Single Advance Term Loan Supplement, Loan No. RX1087T07)



3


EXHIBIT A
To Supplement No. RX1087T07
DESCRIPTION OF EXISTING DEBT TO BE REFINANCED

HOLDER/ISSUER              BOND DESIGNATION          PRINCIPAL OUTSTANDING
CDA                 CDA $20,000,000            $19,930,000
Water Facilities Revenue
Bonds – The Connecticut
Water Company Project –
2009A Series






THIRD AMENDMENT TO
GUARANTEE OF PAYMENT
(LIMITED)

THIS THIRD AMENDMENT TO GUARANTEE OF PAYMENT (this “Amendment”) is executed as of July 7, 2016, by CONNECTICUT WATER SERVICE, INC. , a Connecticut corporation (hereinafter referred to as the “Guarantor”), in favor of CoBANK, ACB , a federally chartered instrumentality of the United States (hereinafter referred to as “CoBank”).

BACKGROUND

A.    The Guarantor has executed and delivered to CoBank that certain Guarantee of Payment (Limited) dated as of October 29, 2012, and an Amendment to Guarantee of Payment (Limited) dated as of March 5, 2013, and a Second Amendment to Guarantee of Payment (Limited) dated as of June 1, 2016 (collectively, the “Existing Guarantee”) pursuant to which the Guarantor has guaranteed, among other things, payment of certain obligations of its wholly-owned subsidiary, The Connecticut Water Company (the “Company”), to CoBank as more particularly described in the Existing Guarantee as the “Guaranteed Obligations.”

B.     The obligations under the Existing Guarantee are set forth in that certain Master Loan Agreement No. RI1087 dated as of October 29, 2012 (the “Master Loan Agreement”), as supplemented by that certain Promissory Note and Single Advance Term Loan Supplement No. RI1087T01 in a principal amount not to exceed $8,000,000.00 and dated as of even date with the Master Loan Agreement, and by that certain Promissory Note and Single Advance Term Loan Supplement No. RI1087T02 in a principal amount not to exceed $14,795,000.00 and dated as of even date with the Master Loan Agreement, and by that certain Promissory Note and Single Advance Term Loan Supplement No. RI1087T03 in a principal amount not to exceed $17,045,000.00 and dated as of even date with the Master Loan Agreement, and by that certain Promissory Note and Single Advance Term Loan Supplement No. RI1087T04 in a principal amount not to exceed $14,805,000.00 and dated as of even date with the Master Loan Agreement, and by that certain Promissory Note and Single Advance Term Loan Supplement No. RI1087105 in a principal amount not to exceed $14,550,000.00 and dated as of March 5, 2013, and by that certain Promissory Note and Single Advance Term Loan Supplement No. RX1087T06 in a principal amount not to exceed $30,000,000 and dated as of June 1, 2016. The Master Loan Agreement, as supplemented, is referred to in the Existing Guaranty as the (“Loan Agreement”).

C.    The Company has requested an increase to the Loan Agreement and CoBank is willing to extend the additional credit to the Company provided that the Guarantor agrees to guarantee this additional loan.

D.     In satisfaction of the condition and intending to benefit by the extension of additional credit by CoBank to the Company, the Guarantor is entering into this Amendment.





NOW, THEREFORE, in order to induce CoBank to extend additional credit to the Company and for good and valuable other consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor and CoBank agree to amend the Existing Guarantee as follows:

1.
The Loan Agreement as defined in the Existing Guarantee is hereby amended to include that certain Promissory Note and Single Advance Term Loan Supplement No. RX1087T07 in a principal amount not to exceed $19,930,000 and dated as of July 7, 2016.

2.
All references in the Existing Guarantee to the Guaranteed Obligation shall include all obligations under the Loan Agreement, as such term has been amended by this Amendment.

3.
To the extent not inconsistent herewith, all other terms and conditions of the Existing Guarantee shall remain in full force and effect and the Guarantor hereby ratifies and confirms its guarantee of the Guaranteed Obligations of the Company, as amended by this Amendment.

IN WITNESS WHEREOF , the parties have caused this Amendment to be executed as of the date shown above by their duly authorized officers.

CONNECTICUT WATER SERVICE, INC.    


By: /s/ David C. Benoit                

Name: David C. Benoit                    

Title: Senior Vice President – Finance and CFO        


COBANK, ACB


By: /s/ Shannon Smith                    

Name: Shannon Smith                    

Title: Assistant Corporate Secretary            




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NOTICE TO BORROWER
THE FOLLOWING DISCLOSURE RELATES TO THE AT RISK NATURE OF THE EQUITY INVESTMENT REQUIRED AS A CONDITION TO AN EXTENSION OF CREDIT. PLEASE READ THESE MATERIALS CLOSELY WHEN EVALUATING THE PROPOSED CREDIT TERMS.
You have received, or the bank has made available to you, the bank’s most recent annual report, the most recent quarterly report, a copy of the Bylaws, and a copy of the current Capital Plan.
As a condition to the extension of credit, borrowers are required to own equity in the bank. Equity ownership requirements are established by the board of directors from time to time as set forth in the Capital Plan. Currently the Capital Plan requires each active stockholder to own a minimum investment of the bank’s capital of $1,000 or 2 percent of the loan, whichever is less. After this minimum level is achieved, all future capitalization requirements will be made through retained patronage earnings and no additional out-of-pocket equity purchases beyond the initial investment will be required. Equity of owners whose current investment is above target level will be available for retirement until the target equity level is reached. The Capital Plan may be amended from time to time by the board of directors. Such amendments may increase the amount of capital required to be invested to maintain a loan.
Equity will be retired and patronage distributions will be made in accordance with the Bylaws and Capital Plan, as may be amended from time to time.
ALL EQUITY IN THE BANK: (1) IS RETIREABLE ONLY AT THE DISCRETION OF THE BOARD OF DIRECTORS AND THEN ONLY IF MINIMUM CAPITAL STANDARDS ESTABLISHED BY LAW ARE MET; AND (2) IS AN INVESTMENT IN THE BANK THAT IS AT RISK AND SHOULD NOT BE CONSIDERED EQUIVALENT TO A COMPENSATING BALANCE. AT PRESENT, THE BANK MEETS ITS MINIMUM CAPITAL STANDARDS AND KNOWS OF NO REASON WHY IT SHOULDN’T CONTINUE TO MEET THOSE STANDARDS ON THE BANK’S NEXT EARNINGS DISTRIBUTION DATE.




Exhibit 99.1
NEWS

Connecticut Water Files for Regulatory Approval
to Acquire The Heritage Village Water Company

Clinton, Connecticut, July 8, 2016 – Connecticut Water Service, Inc. (CTWS) announced today that on July 7, 2016, it filed its application with the Connecticut Public Utilities Regulatory Authority (PURA) for approval to acquire The Heritage Village Water Company (HVWC).
CTWS, through its wholly owned regulated water utility in Connecticut, Connecticut Water Company (CWC), currently serves 92,000 customers in 56 communities across the state. One of CWC’s water systems in the nearby Central Naugatuck River Valley serves approximately 10,000 customers in the communities of Beacon Falls, Bethany, Middlebury, Naugatuck, Prospect, and Waterbury – and is already interconnected with the HVWC system in Middlebury. HVWC serves 4,700 water and 3,000 wastewater customers in Southbury, Middlebury, and Oxford, Connecticut. HVWC would be a sister company to CWC.
Eric Thornburg, President and CEO of Connecticut Water commented, “Connecticut Water is well positioned to serve the community, as we have an understanding of complex water system operations and regulations and have direct knowledge of the Heritage Village system, having been its contract operator for more than a decade.” CWC has a team of professionals and in-house capabilities in water quality, treatment, operations, engineering, customer service, finance, and other support functions. Thornburg further noted, “We have the financial resources and ready access to capital to support the operations and make investments in the HVWC water system infrastructure over time, as needed, without adding costs to the community or competing for taxpayer dollars.” As a private water company, HVWC paid a total of $385,000 in local taxes to the communities of Southbury, Middlebury and Oxford for 2015.



Connecticut Water recognizes the importance of the Pomperaug River and will be a good steward of that natural resource. It is uniquely positioned to provide operational flexibility and opportunities to adjust the use of sources to reduce the pressure on the Pomperaug River. The application states that if CTWS owns HVWC and serves HVWC, it will make available up to 0.5 million gallons of water per day to HVWC’s customers through the existing interconnection to meet the long-term water needs of customers of both systems and satisfy system demands in an environmentally sound manner. CWC further notes its record of promoting conservation among their customers and their interest in driving conservation with the HVWC customers to help protect the local water resources.
Thornburg further explained, “Connecticut Water also has a strong focus and team dedicated to delivering excellent customer service. We have several customer programs in place that will be extended to enhance the level of service for the HVWC customers."
Since 1986, CWC has acquired 58 small water systems serving approximately 14,000 customers. These systems ranged in size from fewer than 250 customers to 5,400 customers. These systems have all been effectively integrated into CWC and are delivering world class customer service and operating in compliance with state and federal water quality standards. As part of a larger, regional company, HVWC customers will benefit from Connecticut Water’s size and presence that provides for operational efficiencies, purchasing power, and other economies of scale that ultimately drive cost savings.
Thornburg concluded, “While only about one-third of the residents of Southbury are served by the HVWC system, any decisions about the company and its ownership can affect the entire community. We want to be sure residents and local leaders are informed about how we plan to serve the community and we stand ready to answer any questions you may have. We have a website to provide updated information at www.HeritageVillageWater.com.”

(More)


About Connecticut Water
Connecticut Water (or The Connecticut Water Company) is a regulated public water utility subsidiary of Connecticut Water Service, Inc. (NASDAQ:CTWS). Connecticut Water serves about 92,000 customers, or more than 315,000 people, in the state of Connecticut. Other CTWS subsidiaries include the Maine Water Company in Maine.
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This news release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company’s results of operation, financial position and long-term strategy. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties discussed in our filings with the Securities and Exchange Commission, which could cause the Company’s actual results to differ materially from expected results. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.


News media contact:

Daniel J Meaney, APR,
Director of Corporate Communications
Connecticut Water Service, Inc.
93 West Main Street, Clinton, CT 06413-1600
(860) 664-6016



Information Technology Solutions Connecticut Water and Heritage Village Join to Serve Customers and Communities Water utilities are regulated by the US EPA and the Connecticut Department of Public Health (DPH) with regard to water quality and operations, and the Department of Energy and Environmental Protection for environmental compliance. Private water companies’ rates and service are overseen by the Public Utilities Regulatory Authority through a well-documented public process. Connecticut Water brings a depth of experience as well as technical and financial resources to effectively serve the community and customers of Heritage Village Water Company (HVWC). What can Connecticut Water bring to serve the community?  Understanding of complex water system operations and regulations,  Strong record of regulatory compliance and environmental stewardship,  Knowledge of the Heritage Village system and its operation, having been the contract operator for more than a decade,  Expertise in treatment, operations, engineering, and other critical support functions,  An experienced team with specialized licenses in water treatment, distribution, and cross connections,  In-house capabilities in customer service, billing, finance, information technology, water resource planning, environmental management, public relations, and regulatory affairs,  Financial resources to support the operations, maintain the system, and make necessary capital improvements to repair or replace infrastructure as needed over time. How will HVWC customers and community benefit from the merger?  Rates will stay the same and all aspects of the 2015 HVWC rate case decision will be honored,  The local office will be maintained for at least one year and HVWC employees will continue in their same roles with additional support and resources available from Connecticut Water,  Will be part of a larger, regional company that provides operational efficiencies, greater purchasing power and other economies of scale that result in cost savings, and  The Company will continue to pay significant local property taxes ($385,000 per year) with no additional costs or obligations to taxpayers. Connecticut Water is proud to deliver quality water and service to 92,000 customers in 56 Connecticut communities. Safe reliable water provides for public health, public safety, and economic development for customers and the communities we serve. We welcome the opportunity to serve the 4,700 customers of Heritage Village Water Company.

 
Maureen Westbrook Vice President Customer & Regulatory Affairs 860-664-6055 mwestbrook@ctwater.com Dan Meaney Director Corporate Communications 860-664-6016 dmeaney@ctwater.com Connecticut Water owns and operates systems that serve 92,000 customers in 56 towns in Connecticut including a system in the Central Naugatuck River Valley that serves approximately 10,000 customers in Beacon Falls, Bethany, Middlebury, Naugatuck, Prospect, and Waterbury. The company is a recognized leader in environmental stewardship and has an excellent reputation with regulators and community officials. Connecticut Water is a uniquely positioned partner who:  has a record of promoting water conservation to lower demands and reduce pressure on water resources,  is part of a larger water system and can provide operational flexibility and opportunities to adjust the use of sources to reduce the pressure on the sources in the Pomperaug River watershed,  can make up to 0.5 million gallons of water a day available to HVWC through an existing interconnection that will allow HVWC to satisfy their system demands in an environmentally sound manner, and  is eager to partner with local officials and the Pomperaug River Watershed Coalition to support the goals of protection of the local water resources. Continuing the Conversations While only about one-third of the residents of Southbury are served by the HVWC system, any decisions about the company and its ownership can affect the entire community. We want to be sure residents and local leaders are informed about how we plan to serve the community and we stand ready to answer any questions you may have. The companies will be open and transparent about the acquisition proceeding, which is subject to approval by the Connecticut Public Utilities Regulatory Authority (Docket # 16-07-09). There will be notice of any hearings and opportunities for the public to comment in the process. Regular communications will be provided to customers and a dedicated web page will be established for Heritage Village Water customers to access information on water quality, customer service and billing. We have a website to provide updated information at www.HeritageVillageWater.com or you may visit www.ctwater.com/HeritageVillageWater to learn more.