Essential Utilities

Last updated
Essential Utilities, Inc.
Type Public
IndustryWater and Natural Gas Utilities
FoundedJanuary 4, 1886;136 years ago (January 4, 1886)
Headquarters Bryn Mawr, Pennsylvania, United States
Key people
 Christopher H. Franklin, CEO
RevenueIncrease2.svg US$1,878M (2021) [1]
Increase2.svgUS$431M (2021) [1]
Total assets Increase2.svgUS$14.66B (2021) [1]
Total equity Increase2.svgUS$5.18B (2021) [1]
Number of employees
3,211 [1]
Website www.essential.co

Essential Utilities (formerly Aqua America and Peoples Natural Gas) is an American utility company that has stakes in Illinois, Indiana, New Jersey, North Carolina, Ohio, Pennsylvania, Texas and Virginia [2] The company provides drinking water and wastewater treatment infrastructure and services. [3] Essential Utilities is the publicly traded ($WTRG) parent company that oversees the continued business of Aqua America and Peoples Natural Gas, who both continue to do business under their original names.

Contents

The company began in Pennsylvania and remains headquartered in Bryn Mawr along with the water utility side of the business while the natural gas company People's is headquartered in Pittsburgh.

History

Springfield Water Company pumping station, built in 1899 Springfield Water Company pumping Station 1899.jpg
Springfield Water Company pumping station, built in 1899

The company began January 4, 1886, by the founding of the Springfield Water Company. The company changed its name to the Philadelphia Suburban Water Company (PSW). By 1925 the company provided water to 58 municipalities. [4]

The company was incorporated in 1989. [5]

The current CEO, Christopher H. Franklin, took his position in 2015. [6]

The company partners with Penn Virginia operating subsidiaries to provide water to hydraulic fracturing operations in the Marcellus Shale formation. The company commits to transitioning its Pennsylvania vehicle fleet to compressed natural gas (CNG) within five years. [7]

Acquisitions

In the United States, many water utilities remain government-owned. Water was supplied by 55,000 separate water systems in 2006. [8] However, US and global companies have business models which involve the privatization of utilities to achieve profitability from economy of scale. Additionally, cash-strapped municipalities see benefit to selling their water supply assets. [9]

From 1993 to 2013 Aqua America completed 300 acquisitions. [10] In recent years the company has purchased smaller private utilities across the 12 states, gradually extending southward. [2] Such acquisition comprises the bulk of Aqua America's stated business model. [11]

In January 1998 Aqua America, then known as the Philadelphia Suburban Water Company (PSW) purchased the West Chester, PA municipal water utility assets. [12] Acquisitions of large private companies included the purchases of AquaSource in 2003, Heater and Florida Water Services in 2004, and the New York Water Service Corporation in 2007. [13] [14] [15] [16]

In October 2018 Aqua announced that it was going to purchase Peoples Natural Gas in Pittsburgh PA for $4.27 billion. This deal entered Aqua into the competitive Pittsburgh water market while taking their first step into gas utilities. [17]

Subsidiaries

The company's largest subsidiary is Aqua Pennsylvania, which has been a part of Aqua America since 1996 and accounts for slightly more than half of 2007 operating revenue and provides water services to 50% of the company's total customer base. Aqua Pennsylvania operates in the greater urban and suburban Philadelphia area. [18]

The non-utility subsidiary Aqua Resources, Inc. is not regulated. [3] They provide operations and maintenance contracts, liquid waste hauling, and water and wastewater system maintenance and repair. [5]

See also

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References

  1. 1 2 3 4 5 2021 10-K
  2. 1 2 Aqua America About Us Page
  3. 1 2 "Aqua America Acquires Water Systems in Ohio and North Carolina". businesswire.com. 7 Jan 2015. Retrieved 26 Jan 2015.
  4. ↑ "History". aquaamerica.com. Retrieved 26 Jan 2015.
  5. 1 2 "Company Overview of Aqua Resources, Inc". bloomberg.com. Retrieved 26 Jan 2015.
  6. ↑ www.AquaAmerica.com
  7. ↑ "Aqua America Chairman Cites Water Energy Nexus at CEO Growth Council's "Energy Hub" Conference". finance.yahoo.com. Dec 5, 2014. Retrieved 26 Jan 2015.
  8. ↑ Christopher C. Williams (Oct 16, 2006). "The Lure of Liquid Assets". online.barrons.com/. Retrieved 26 Jan 2015.
  9. ↑ Mike Esterl (Jun 26, 2006). "U.S. water privatizations fail to pan out". post-gazette.com/. Retrieved 26 Jan 2015.
  10. ↑ "Aqua America CEO on Improving the U.S. Water Utility Infrastructure". video.foxbusiness.com. Feb 25, 2013. Retrieved 26 Jan 2015.
  11. ↑ "WTR, 2007, 10-K "Acquisitions and Water Sale Agreements", page 6". Archived from the original on 2011-04-27. Retrieved 2008-11-18.
  12. ↑ "Form 10-Q May 15, 1998". ir.aquaamerica.com/. Archived from the original on 4 March 2016. Retrieved 26 Jan 2015.
  13. ↑ "Philadelphia Suburban Corporation --PSC-- Acquires AquaSource Water and Wastewater Utilities, Now Operating in 15 States". Aqua America, Inc. Archived from the original on 2016-03-04. Retrieved 2015-05-23.
  14. ↑ "Philadelphia Suburban Corporation to Acquire ALLETE's Water and Wastewater Utilities in North Carolina". Aqua America, Inc. Archived from the original on 2016-03-04. Retrieved 2015-05-23.
  15. ↑ "Aqua America buys 63 Fla. water works". Philadelphia Business Journal. Retrieved 2015-05-23.
  16. ↑ "Aqua America to Acquire New York Water Service Corporation; Valued at $51 Million, Acquisition Expected to Be Immediately Accretive". Aqua America, Inc. Archived from the original on 2016-03-04. Retrieved 2015-05-23.
  17. ↑ "Aqua America to acquire Peoples natural gas entities". 23 October 2018.
  18. ↑ "WTR, 2007, 10-K "Business: The Company", page 4". Archived from the original on 2011-04-27. Retrieved 2008-11-18.
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