ACTION LINK:  WOODLANDS COALITION...grassroots effort to save...among other things, grassroots (and forested areas).
Saved Our Land, Saved Our Water...

2001 Special Session done deal--link to draft agreement;  signup for WOODLANDS COALITION...
Date: 30/08/01

US Acquisition For Kelda Group Plc

Kelda Group plc ("Kelda") announces that its US subsidiary, Aquarion Company ("Aquarion")
has entered into legal agreements to acquire four New England water supply businesses from
American Water Works Company Inc ("AWK").

The four businesses supply water in the states of Connecticut, Massachusetts, New York and
New Hampshire, close to Aquarion’s main operations in Connecticut.

The acquisition will grow Aquarion’s water supply business by approximately 50 per cent and is
consistent with Kelda’s strategy for growth in the US market.

The consideration will be two times the book value of the net assets of the acquired companies
at the time of closing, which is anticipated to be about $118 million in cash, plus the
assumption of $115 million of debt. It will be funded from Kelda’s existing cash resources and
debt facilities.

The water companies being acquired are Connecticut-American Water Company,
Massachusetts-American Water Company, New York-American Water Company, and
Hampton Water Company. Together they supply water to 64,000 customer accounts or a
population of 177,000 in Connecticut, Massachusetts, New York and New Hampshire.

Over 60 per cent of the customers are located adjacent to the existing franchise of BHC,
Aquarion’s main water supply subsidiary. Massachusetts Capital Resource Company, a
finance subsidiary of AWK which owns and leases certain assets to Massachusetts-American,
will also be acquired as part of the transaction.

For the year ended 31 December 2000, the aggregate turnover of the companies to be acquired
was $47.3million with profit before tax of $8.5 million and the companies had net assets of $59
million as at that date.

Kelda’s Executive Chairman John Napier said: "This acquisition is a logical next step in the
expansion of our US interests. Our first USA investment, Aquarion and its management team
has performed very well. This second acquisition has an excellent fit with our existing business
in New England and offers the prospect of ongoing value creation. It is expected to be earnings
enhancing from the time of closing."

Kelda acquired Aquarion in January 2000 to provide a platform for growth in the US. The
acquisition of the American Water businesses is a significant expansion in the New England
region of the US where Aquarion operates. The main operations in Connecticut will be
integrated into Aquarion’s existing water supply operations.

The transaction is conditional upon various US regulatory approvals including expiration of the
waiting period under the Hart-Scott-Rodino Act and regulatory approvals in the relevant states.
It is anticipated that these will be received in the first half of 2002.

Background Information:

Aquarion Company, which was acquired by Kelda in January 2000, is headquartered in
Bridgeport, Connecticut. Its principal business is water supply through its BHC and Sea Cliff
Water Company subsidiaries. BHC provides public water to 29 towns in Connecticut. Sea Cliff
serves six towns on Long Island, New York. They serve 146,000 homes and businesses, or a
population of more than 500,000, and form one of the 10-largest private water companies in the
US.

Aquarion, through its Aquarion Management Services and Environmental Engineering &
Remediation Company subsidiaries, provide contracted water and waste water operating and
engineering services to large and small municipal and private utility systems in the Northeast.
Aquarion also owns a timber processing company called Timco. In the year to March 31 2001,
Aquarion reported sales of approximately US$115 million.

The systems being acquired from American Water service 64,000 customer accounts, or a
population of 177,000 in 17 municipalities located in four states. More than 60 percent of these
customers are located adjacent to Aquarion's existing BHC franchise in Connecticut. For
background, its operations in New England follow:

     Connecticut: 27,000 customer accounts, or a population of 87,000 in 6 towns.
     Massachusetts: 17,000 customer accounts, or a population of 26,000 in 5 towns.
     New Hampshire: 8,000 customer accounts, or a population of 20,000 in 3 towns.
     New York: 12,000 customer accounts, or a population of 44,000 in 3 towns. 

How it came to pass...
Now that the first step toward protecting all the land is taken (the study funding)...we are anticipating (hoping) that bipartisanship will continue!
At the beginning of the 2001 Long Session, a full Meeting Room of bipartisan sentiment in Weston sets out marching orders for environmental activists--water and land division--there would be a study of the feasibility of establishing a regional water authority in Fairfield County (and exploration of various alternative ideas) funded by 10 towns (plus more) in the area.  (This study was completed and is being used by all preservation groups around CT.)  Attorney General Blumenthal and Mayor Ganim of Bridgeport had reminded all that this was not just a preservationist's field day, but rather a joint effort between those who sought fair prices for water use, and those who hoped to save open land to make a regional approach work in Fairfield County that will achieve both goals.

Forever Yours or Forever Gone...
"No one will ever know how valuable this land is until it's not there.  We can sit back and watch the subdivisions and traffic take over.  Or we can get out there and do what we can to make sure it's protected for the long haul.  Otherwise, the only open space our children will know is what they see in the movies."

Paul Newman, speaking about water company land preservation.
Actor & Coalition Member

HB5883 IS NOW PA00-203...THANK YOU GOVERNOR...LETS SAVE THE REMAINING WOODS, FIELDS AND WATER BODIES, TOO!  AND THANK YOU, PAUL NEWMAN (PHOTOGRAPHS BELOW, LEFT AND CENTER).  WATER AUTHORITY FEASIBLE?  WE'LL SEE...


The Saugatuck Reservoir - looking to the north, toward Redding...
A VIEW SAVED FOR NOW? LET'S KEEP UP THE PRESSURE...
PAUL NEWMAN JOINS THE COALITION FOR THE PERMANENT PROTECTION OF KELDA LANDS...be "loud and noisy and disagreeable" in order to preserve undeveloped land!!!  Watch the Legislature in 2001 - SB151 "SMART GROWTH" ...
The sky is the limit!  There are few views much more beautiful than this in Weston, CT, U.S.A.  And thanks to our very own legislators--Senator Judith Freedman, Representatives John Stripp and Cathy Tymniak, who, in our area, were particularly singled out for praise by the Connecticut Fund for the Environment, HB5883 (OPEN SPACE TRUST FUND) became law this session and maybe, just maybe, this view (shown above left) can be preserved forever!
Taking the first step were the legislators named below, who co-sponsored the bi-partisan bill! Thanks to all Co-Sponsors...

Senate:
Sen. George Jepson (Majority Leader)
Sen. Judith Freedman
Sen. Gary LeBeau

House:  Latest to "sign on" is Representative Dolly Powers of Greenwich!
Rep. Robert Ward (Minority Leader)
Rep. Sonya Googins
Rep. Alex Knopp
Rep. Moira Lyons
Rep. Mary Mushinshy
Rep, Jefferson Davis
Rep. John Stripp
Rep. Cathy Tymniak
Rep. G. Kenneth Bernhard
Rep. Pat Widlitz
Rep. Richard Roy
Rep. Marilyn Hess
Rep. Lawrence Miller
Rep. Demetrios Giannaros
Rep. John Frey
Rep. Gail Hamm
Rep. Anthony Tercyak
Rep. Nancy Kerensky
Rep. Ruth Fahrbach
Rep. Arthur O'Neill
Rep. Richard Belden
Rep. Andrew Fleischmann
Rep. Peter Nystrom
Rep. Kevin Ryan
Rep. F. Philip Prelli
Rep. Bob Godfrey
Rep. Lewis Wallace
Rep. Pat Shea
Rep. Steven Mikutel
Rep. Ted Graziani
Rep. Richard Ferrari
Rep. Paul Doyle
Rep. John Martinez
Rep. Robert Simmons
Rep. William Hamzy
Rep. David Scribner
Rep. David Cappiello
Rep. James Amann
and more every day!!!

Thank you, thank you, thank you!