DPUC Issues Final Decision on Rate Amendment Application of Birmingham Utilities, Inc.
29 November 2006 - 7:55AM
Business Wire
BIW Limited (AMEX:BIW), announced today that its regulated water
utility, Birmingham Utilities, Inc., was granted a $1,172,148
annual increase in water service rates by the CT Department of
Public Utility Control (DPUC). The Company filed an application
with the DPUC on May 19, 2006 requesting a $1,793,976 rate
increase, which was subsequently reduced to $1,782,728. The overall
increase, which amounts to 16.2%, will have the effect of
increasing the average residential customer�s water bill by about
22 cents per day, or $20.22 per quarter. The average customer uses
approximately 18,000 gallons of water per quarter and would pay
approximately $123.22 per quarter. With the increase, water will
cost about 7 tenths of one cent per gallon. BIW Limited President,
John S. Tomac, said, �Although the increase is less than the
Company requested, we are pleased the DPUC recognized and allowed
the capital improvements the Company has made in its Ansonia and
Eastern divisions since 2003. The Company�s rate base has grown
from $13,305,072 in 2003 to $22,842,840 in 2006. These capital
improvements were imperative as our water systems must remain
viable. We have been working diligently to insure the service we
provide and the water we deliver is above our customers�
expectations and all regulatory standards.� The DPUC set the
Company�s return on equity at 10.2%. The decision also allows the
Company to recover increases in depreciation expense and property
taxes since 2003. Tomac also stated, �In large part, the reduction
in the allowed amount versus the requested increase was a reduction
in the allowed rate of return on equity and the disallowance of
certain operating expenses.� BIW Limited (BIW or the Company) is
the parent company of Birmingham Utilities, Inc., a regulated
public water service company which collects and distributes water
for domestic, commercial and industrial uses and fire protection in
the Naugatuck Valley towns of Ansonia, Derby, and in small parts of
the contiguous Town of Seymour. Water service is also provided for
domestic and commercial use in 33 satellite water operations in 16
towns in eastern Connecticut. Birmingham H2O Services, Inc., the
Company�s non-regulated subsidiary, offers a consumer protection
program for residential service lines and provides water related
services to other water utilities, municipalities, contractors and
individuals throughout Connecticut. This press release contains
forward-looking statements. While these forward-looking statements
represent our judgments and future expectations concerning the
development of our business and the impact of the rate application,
a number of risks, uncertainties, and other important factors could
cause actual developments and results to differ materially from our
expectations. These factors include, but are not limited to, the
risk that anticipated benefits will not be obtained or will not be
obtained within the time anticipated; and other key factors that
could adversely affect our business and financial performance
contained in our Form 10-K for the year ended December 31, 2005 and
other filings with the Securities and Exchange Commission. BIW
Limited is under no 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. BIW Limited (AMEX:BIW), announced today that its
regulated water utility, Birmingham Utilities, Inc., was granted a
$1,172,148 annual increase in water service rates by the CT
Department of Public Utility Control (DPUC). The Company filed an
application with the DPUC on May 19, 2006 requesting a $1,793,976
rate increase, which was subsequently reduced to $1,782,728. The
overall increase, which amounts to 16.2%, will have the effect of
increasing the average residential customer's water bill by about
22 cents per day, or $20.22 per quarter. The average customer uses
approximately 18,000 gallons of water per quarter and would pay
approximately $123.22 per quarter. With the increase, water will
cost about 7 tenths of one cent per gallon. BIW Limited President,
John S. Tomac, said, "Although the increase is less than the
Company requested, we are pleased the DPUC recognized and allowed
the capital improvements the Company has made in its Ansonia and
Eastern divisions since 2003. The Company's rate base has grown
from $13,305,072 in 2003 to $22,842,840 in 2006. These capital
improvements were imperative as our water systems must remain
viable. We have been working diligently to insure the service we
provide and the water we deliver is above our customers'
expectations and all regulatory standards." The DPUC set the
Company's return on equity at 10.2%. The decision also allows the
Company to recover increases in depreciation expense and property
taxes since 2003. Tomac also stated, "In large part, the reduction
in the allowed amount versus the requested increase was a reduction
in the allowed rate of return on equity and the disallowance of
certain operating expenses." BIW Limited (BIW or the Company) is
the parent company of Birmingham Utilities, Inc., a regulated
public water service company which collects and distributes water
for domestic, commercial and industrial uses and fire protection in
the Naugatuck Valley towns of Ansonia, Derby, and in small parts of
the contiguous Town of Seymour. Water service is also provided for
domestic and commercial use in 33 satellite water operations in 16
towns in eastern Connecticut. Birmingham H2O Services, Inc., the
Company's non-regulated subsidiary, offers a consumer protection
program for residential service lines and provides water related
services to other water utilities, municipalities, contractors and
individuals throughout Connecticut. This press release contains
forward-looking statements. While these forward-looking statements
represent our judgments and future expectations concerning the
development of our business and the impact of the rate application,
a number of risks, uncertainties, and other important factors could
cause actual developments and results to differ materially from our
expectations. These factors include, but are not limited to, the
risk that anticipated benefits will not be obtained or will not be
obtained within the time anticipated; and other key factors that
could adversely affect our business and financial performance
contained in our Form 10-K for the year ended December 31, 2005 and
other filings with the Securities and Exchange Commission. BIW
Limited is under no 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.
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