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Acquisition addresses water quality concerns
Middlesex Water Co. announced that its affiliate, Tidewater Environmental Services Inc. (TESI), began providing wastewater service to residents of The Plantations and Plantations East communities near Lewes, Del., effective Oct. 1, 2013 following the system purchase by TESI.
The Delaware Public Service Commission (DEPSC) approved the sale as well as the transfer of a Certificate of Public Convenience and Necessity (CPCN) to serve approximately 600 wastewater service customers in Sussex County, Del. As part of the DEPSC approval, TESI will be making agreed-upon capital investments and operational improvements to help the system comply with state water pollution regulations.
In approving the transaction, state regulators lauded TESI for stepping in to provide a practical solution to an environmental issue, and for its professional expertise in managing the necessary system improvements and ensuring ongoing maintenance. Rates have been designed to allow for full recovery of plant investment and operational costs, but customers will see no rate increase for the first year after the acquisition. After that, rates will remain as low, or lower than most comparable public and private central wastewater systems in southern Delaware.
"We appreciate the support of the Delaware Department of Natural Resources and Environmental Control, as well as the DEPSC staff and Commission, and the Delaware Public Advocate, in supporting this transaction and for their confidence in our company to improve this system as well as the service to the customers," said Dennis W. Doll, President of Middlesex Water Company and Chairman of TESI. "This transaction demonstrates the importance of strong collaboration between the private sector and various state agencies in addressing environmental issues to benefit the public interest and further reinforces that private wastewater companies can play a vital role in solving the state's existing and future wastewater challenges.”