Aqua Pennsylvania to Welcome New Garden Township as First Municipal Acquisition Using Fair Market Valuation Legislation

BRYN MAWR, Pa.–(BUSINESS WIRE)–Aqua America, Inc. (NYSE: WTR) today announced its largest subsidiary,
Aqua Pennsylvania, received approval from the Pennsylvania Public
Utility Commission to purchase the wastewater assets of New Garden
Township, serving approximately 2,100 customer connections in southeast
Pennsylvania’s Chester County.

Aqua’s application was the first that the PUC has considered since the
state enacted Act 12, commonly referred to as fair market valuation
legislation.

“We’re proud that Aqua is the first to have an acquisition approved by
the PUC under this new legislation,” said Aqua America CEO Christopher
Franklin.

The new law allows companies like Aqua to pay a fair market amount for
municipal water and wastewater systems, benefitting local governments,
customers, and the environment. Prior to FMV legislation, utilities were
often limited to including only the original depreciated cost into their
rate base, which became a regulatory barrier to a sale. Now, Aqua and
other regulated utilities can leverage compliance expertise, purchasing
power and operational efficiencies to benefit local systems’
infrastructure and service.

“This purchase is all part of Aqua’s efforts to do our part to
strengthen wastewater infrastructure for communities in the states we
serve, which means improved service and environmental stewardship for
generations to come,” Franklin said.

With the new legislation, Aqua is focused on balancing fair price for
systems, making important infrastructure improvements and ensuring
reasonable rates for its service. Aqua paid $29.5 million for the New
Garden system.

“We’re thrilled to welcome New Garden Township residential and business
customers to the Aqua family, and look forward to providing them the
highest level of service and value,” Franklin said. “We hope more
communities take advantage of the benefits this new legislation can
bring.”

According to Franklin, Aqua expects to grow its customer base 1.5 to 2
percent in 2017.

About Aqua America

Aqua America is one of the largest U.S.-based, publicly traded water
utilities and serves nearly 3 million people in Pennsylvania, Ohio,
North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. Aqua
America is listed on the New York Stock Exchange under the ticker symbol
WTR. Visit AquaAmerica.com
for more information, or follow Aqua on Facebook at facebook.com/MyAquaAmerica
and on Twitter at @MyAquaAmerica.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among
others: the company’s ability to grow its customer base 1.5 to 2.0
percent in 2017, and the ability of the company to acquire additional
wastewater systems. There are important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements including: general economic business
conditions, the successful integration of the customers and the
facility, the ability to improve customer service and environmental
stewardship, the success of the company’s growth efforts including its
ability to utilize Act 12, and other factors discussed in our Annual
Report on Form 10-K, which is on file with the Securities and Exchange
Commission. For more information regarding risks and uncertainties
associated with Aqua America’s business, please refer to Aqua America’s
annual, quarterly and other SEC filings. Aqua America is not under any
obligation — and expressly disclaims any such obligation — to update or
alter its forward-looking statements whether as a result of new
information, future events or otherwise.

WTRF

Contacts

Aqua America, Inc.
Brian Dingerdissen, Investor Relations
610-645-1191
[email protected]
or
Stacey
Hajdak, Communications
610-520-6309
M: 267-294-1866
[email protected]