þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2006 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM |
Connecticut
(State or other jurisdiction of incorporation or organization) |
06-0739839
(I.R.S. Employer Identification No.) |
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93 West Main Street, Clinton, CT
(Address of principal executive offices) |
06413-1600
(Zip Code) |
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EX-10.1: FIRST AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT | ||||||||
EX-10.2: FIRST AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT | ||||||||
EX-10.3: FIRST AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT | ||||||||
EX-31.1: CERTIFICATION | ||||||||
EX-31.2: CERTIFICATION | ||||||||
EX-32: CERTIFICATION |
Page 3
Page 4
March 31, | Dec. 31, | |||||||
2006 | 2005 | |||||||
(Unaudited) | (Unaudited) | |||||||
Common Stockholders Equity
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Common Stock Without Par Value Authorized 15,000,000 Shares;
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$ | 60,144 | $ | 59,604 | ||||
Shares
Issued and Outstanding: 2006 8,205,424 ; 2005 8,169,627
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Stock Issuance Expense
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(1,599 | ) | (1,599 | ) | ||||
Retained Earnings
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35,764 | 35,777 | ||||||
Accumulated Other Comprehensive Income
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354 | 294 | ||||||
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Total Common Stockholders Equity
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94,663 | 94,076 | ||||||
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Preferred Stock
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Cumulative Preferred Stock of Connecticut Water Service, Inc.
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Series A Voting, $20 Par Value; Authorized, Issued and
Outstanding 15,000 Shares, Redeemable at $21.00 Per Share
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300 | 300 | ||||||
Series $.90 Non-Voting, $16 Par Value; Authorized 50,000 Shares
Issued and Outstanding 29,499 Shares, Redeemable at $16.00 Per Share
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472 | 472 | ||||||
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Total Preferred Stock of Connecticut Water Service, Inc.
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772 | 772 | ||||||
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Cumulative Preferred Stock of Barnstable Water Company
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Voting, $100 Par Value; Authorized, Issued and Outstanding
750 shares. Redeemable at $105 per share.
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75 | 75 | ||||||
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Total Preferred Stock
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847 | 847 | ||||||
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Long-Term Debt
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The Connecticut Water Company
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Unsecured Water Facilities Revenue Refinancing Bonds
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5.05% 1998 Series A, due 2028
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9,640 | 9,640 | ||||||
5.125% 1998 Series B, due 2028
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7,635 | 7,685 | ||||||
4.40% 2003A Series, due 2020
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8,000 | 8,000 | ||||||
5.00% 2003C Series, due 2022
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14,930 | 14,930 | ||||||
Var. 2004 Series Variable Rate, due 2029
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12,500 | 12,500 | ||||||
Var. 2004 Series A, due 2028
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5,000 | 5,000 | ||||||
Var. 2004 Series B, due 2028
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4,550 | 4,550 | ||||||
5.00% 2005 A Series, due 2040
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10,000 | 10,000 | ||||||
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Total Connecticut Water Company
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72,255 | 72,305 | ||||||
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Crystal Water Utilities Corporation
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8.0% New London Trust, Due 2017
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104 | 105 | ||||||
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Crystal Water Company of Danielson
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5.00% Unsecured Water Facilities Revenue Bonds 2005 A Series, Due 2040
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5,000 | 5,000 | ||||||
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Chester Realty
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6% Note Payable, Due 2006
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12 | 12 | ||||||
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Unionville Water Company
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8.125% Farmington Savings Bank, Due 2011
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810 | 842 | ||||||
3.56% State of Connecticut, Due 2023
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1,455 | 1,471 | ||||||
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Total Unionville
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2,265 | 2,313 | ||||||
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Total Connecticut Water Service, Inc.
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79,636 | 79,735 | ||||||
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Less Current Portion
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(2,284 | ) | (2,331 | ) | ||||
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Total Long-Term Debt
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77,352 | 77,404 | ||||||
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Total Capitalization
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$ | 172,862 | $ | 172,327 | ||||
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Page 5
For the Three Months Ended March 31, 2006 and 2005
(In thousands, except per share amounts)
2006
2005
(Unaudited)
(Unaudited)
$
10,458
$
10,924
6,121
5,158
1,464
1,435
106
771
1,384
1,329
9,075
8,693
1,383
2,231
924
261
272
220
148
121
144
39
1,488
641
914
670
166
117
94
88
1,174
875
1,697
1,997
19
(12
)
1,716
1,985
9
9
$
1,707
$
1,976
8,183
8,047
8,201
8,084
$
0.21
$
0.25
0.00
0.00
$
0.21
$
0.25
$
0.21
$
0.25
0.00
0.00
$
0.21
$
0.25
$
0.2125
$
0.2100
Page 6
For the Three Months Ended March 31, 2006 and 2005
(In thousands)
2006
2005
(Unaudited)
(Unaudited)
$
1,707
$
1,976
60
172
$
1,767
$
2,148
Page 7
For the Three Months Ended March 31, 2006 and 2005
(In thousands, except per share amounts)
2006
2005
(Unaudited)
(Unaudited)
$
35,777
$
32,264
1,716
1,985
37,493
34,249
3
3
6
6
1,720
1,678
1,729
1,687
$
35,764
$
32,562
Page 8
For the Three Months Ended March 31, 2006 and 2005
(In thousands)
2006
2005
(Unaudited)
(Unaudited)
$
1,716
$
1,985
19
(12
)
1,697
1,997
(921
)
(181
)
(134
)
1,532
1,482
1,170
257
(460
)
2,336
52
90
(1,469
)
(4,966
)
(218
)
143
(495
)
(792
)
1,202
1,206
19
145
1,222
1,351
(3,687
)
(2,239
)
(735
)
(127
)
(4,422
)
(2,366
)
997
(3,425
)
(2,366
)
(34
)
(3,425
)
(2,400
)
7,500
8,650
(4,750
)
(5,650
)
540
604
(99
)
(49
)
20
43
735
127
(1,737
)
(1,688
)
2,209
2,037
(77
)
2,209
1,960
5
910
4,439
707
$
4,444
$
1,617
$
426
$
42
$
28
$
$
1,471
$
1,218
$
124
$
116
$
$
67
$
1
$
15
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Page 10
Three Months Ended
March 31,
2005
(in thousands, except for per share data)
$
1,976
84
(107
)
$
1,953
$
0.25
$
0.24
$
0.24
$
0.24
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Life | Value | ||||||||||||
Outstanding at January 1, 2006
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202,271 | $ | 24.04 | |||||||||||||
Granted
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Forfeited
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Exercised
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Outstanding at March 31, 2006
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202,271 | $ | 24.04 | 5.2 years | $ | 601,725 | ||||||||||
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Exercisable at March 31, 2006
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175,685 | $ | 23.44 | 5.0 years | $ | 597,957 | ||||||||||
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Weighted | ||||||||
Average | ||||||||
Grant-Date | ||||||||
Non-vested Shares | Shares | Price | ||||||
Non-vested at January 1, 2006
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97,346 | $ | 27.90 | |||||
Granted
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Vested
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Forfeited
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Non-vested at March 31, 2006
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97,346 | $ | 27.90 | |||||
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Pension Benefits | ||||||||
Components of Net Periodic Cost | ||||||||
Three months ended March 31 | 2006 | 2005 | ||||||
Service Cost
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$ | 307 | $ | 274 | ||||
Interest Cost
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420 | 381 |
Page 11
Pension Benefits | ||||||||
Components of Net Periodic Cost | ||||||||
Three months ended March 31 | 2006 | 2005 | ||||||
Expected Return on Plan Assets
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(459 | ) | (411 | ) | ||||
Amortization of Transition Obligation
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1 | 3 | ||||||
Amortization of Prior Service Cost
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19 | 24 | ||||||
Amortization of Net (Gain) Loss
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122 | 68 | ||||||
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Net Periodic Benefit Cost
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$ | 410 | $ | 339 | ||||
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Other Postretirement Benefits | ||||||||||||||||
Components of Net Periodic Cost | Connecticut Water | Barnstable Water | ||||||||||||||
Three months ended March 31 | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Service Cost
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$ | 135 | $ | 100 | $ | | $ | | ||||||||
Interest Cost
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111 | 93 | 1 | 2 | ||||||||||||
Expected Return on Plan Assets
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(45 | ) | (43 | ) | | | ||||||||||
Amortization of Transition Obligation
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30 | 30 | | 2 | ||||||||||||
Recognized Net (Gain) Loss
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51 | 28 | (1 | ) | (1 | ) | ||||||||||
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Net Periodic Benefit Cost, Prior to
FAS 88 Event
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282 | 208 | | 3 | ||||||||||||
Additional Amount Recognized Due to
Settlement or Curtailment
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| | 30 | | ||||||||||||
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Net Periodic Benefit Cost
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$ | 282 | $ | 208 | $ | 30 | $ | 3 | ||||||||
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3 Months Ended | ||||||||
03/31/06 | 03/31/05 | |||||||
Common Shares Outstanding:
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End of period:
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8,205,424 | 8,067,704 | ||||||
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Weighted Average Shares Outstanding:
|
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Days outstanding basis
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Basic
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8,183,193 | 8,047,016 | ||||||
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Diluted
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8,201,260 | 8,084,124 | ||||||
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Page 12
Income from | ||||||||||||||||
Pre-tax | Continuing | |||||||||||||||
Segment | Revenues | Income | Income Tax | Operations | ||||||||||||
Water Activities
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$ | 10,458 | $ | 639 | $ | 138 | $ | 501 | ||||||||
Real Estate
Transactions
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1,005 | 594 | (330 | ) | 924 | |||||||||||
Services & Rentals
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1,160 | 453 | 181 | 272 | ||||||||||||
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Total
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$ | 12,623 | $ | 1,686 | $ | (11 | ) | $ | 1,697 | |||||||
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Page 13
Income from | ||||||||||||||||
Pre-tax | Continuing | |||||||||||||||
Segment | Revenues | Income | Income Tax | Operations | ||||||||||||
Water Activities
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$ | 10,924 | $ | 2,288 | $ | 772 | $ | 1,516 | ||||||||
Real Estate
Transactions
|
475 | 427 | 166 | 261 | ||||||||||||
Services & Rentals
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937 | 361 | 141 | 220 | ||||||||||||
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Total
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$ | 12,336 | $ | 3,076 | $ | 1,079 | $ | 1,997 | ||||||||
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Page 14
Page 15
Increase | ||||
(Decrease) | ||||
Business Segment | Income | |||
Water Activities
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$ | (1,015,000 | ) | |
Real Estate Transactions
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663,000 | |||
Services and Rentals
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52,000 | |||
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Total
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$ | (300,000 | ) | |
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Page 16
-
a $962,000 increase in Operation and Maintenance expense due primarily due to the
following expense increases:
$
300
285
161
118
98
$
962
Page 17
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Exhibit | ||
Number | Description | |
3.1
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Certificate of Incorporation of Connecticut Water Service, Inc. amended and restated as of April, 1998. (Exhibit 3.1 to Form 10-K for the year ended 12/31/98). | |
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3.2
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By-Laws, as amended, of Connecticut Water Service, Inc. as amended and restated as of August 12, 1999. (Exhibit 3.2 to Form 10-K for the year ended 12/31/99). | |
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3.3
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Certification of Incorporation of The Connecticut Water Company effective April, 1998. (Exhibit 3.3 to Form 10-K for the year ended 12/31/98). | |
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3.4
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Certificate of Amendment to the Certificate of Incorporation of Connecticut Water Service, Inc. dated August 6, 2001 (Exhibit 3.4 to Form 10-K for the year ended 12/31/01). | |
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3.5
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Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Connecticut Water Service, Inc. dated April 23, 2004. (Exhibit 3.5 to Form 10-Q for the quarter ended March 31, 2003.) | |
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10.1*
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First Amendment to Reimbursement and Credit Agreement, dated as of April 28, 2006, between The Connecticut Water Company and Citizens Bank of Rhode Island, 2004A Series. | |
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10.2*
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First Amendment to Reimbursement and Credit Agreement, dated as of April 28, 2006, between The Connecticut Water Company and Citizens Bank of Rhode Island, 2004B Series. | |
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10.3*
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First Amendment to Reimbursement and Credit Agreement, dated as of April 28, 2006, between The Connecticut Water Company and Citizens Bank of Rhode Island, 2004 Series Variable Rate, due 2029. | |
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31.1*
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Rule 13a-14 Certification of Eric W. Thornburg, Chief Executive Officer. | |
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31.2*
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Rule 13a-14 Certification of David C. Benoit, Chief Financial Officer. | |
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32*
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Certification of Eric W. Thornburg, Chief Executive Officer, and David C. Benoit, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
* | filed herewith |
Page 20
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Connecticut Water Service, Inc. | |||||
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(Registrant) | |||||
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Date:
May 10, 2006
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By: | /s/ David C. Benoit | ||||
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David C. Benoit | |||||
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Vice President Finance, and | |||||
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Chief Financial Officer | |||||
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Date:
May 10, 2006
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By: | /s/ Peter J. Bancroft | ||||
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Peter J. Bancroft | |||||
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Assistant Treasurer |
THE CONNECTICUT WATER COMPANY | ||||||
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By: | /s/ David C. Benoit | ||||
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Name: David C. Benoit | |||||
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Title: Vice President-Finance and Chief | |||||
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Financial Officer | |||||
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CITIZENS BANK OF RHODE ISLAND | ||||||
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By: | /s/ Anthony H. Castellon | ||||
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Name: Anthony H. Castellon | |||||
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Title: Vice President |
THE CONNECTICUT WATER COMPANY | ||||||
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By: | /s/ David C. Benoit | ||||
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Name: David C. Benoit | |||||
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Title: Vice President-Finance and Chief Financial Officer | |||||
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CITIZENS BANK OF RHODE ISLAND | ||||||
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By: | /s/ Anthony H. Castellon | ||||
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Name: Anthony H. Castellon | |||||
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Title: Vice President |
THE CONNECTICUT WATER COMPANY | ||||||
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By: | /s/ David C. Benoit | ||||
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Name: David C. Benoit | |||||
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Title: Vice President-Finance and Chief Financial Officer | |||||
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CITIZENS BANK OF RHODE ISLAND | ||||||
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By: | /s/ Anthony H. Castellon | ||||
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Name: Anthony H. Castellon | |||||
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Title: Vice President |