'Although this is not a municipal acquisition, it is worth noting that municipalities in other states with FMV legislation have sold their utility systems to Aqua and used the proceeds to offset tax increases, build new municipal facilities, and fund new infrastructure projects among other things. 'My team and I are proud to welcome residents of The Commons as our new customers,' said Aqua Texas President Bob Laughman. 'Aqua can benefit other communities like The Commons by leveraging our expertise in compliance, large-scale purchasing power and other efficiencies that can be realized with a larger, regional operation.' 'The Texas fair market value law offers a compelling solution to municipalities, developers and other utility owners who must meet ever-increasing health and environmental standards and the costs of operating and maintaining their systems,' said Franklin. When the agreement of sale was reached several months ago, Essential Chairman and CEO Christopher Franklin said The Commons agreement illustrated the benefits of the new fair market value law.

The new FMV law applies to all water and wastewater utilities including those owned and operated by private investors and municipal governments. Prior to the new law, enacted in 2019, a system’s value previously was determined by its depreciated original cost, which generally did not reflect a reasonable market value for those assets. The transaction is the first of which Aqua Texas was able to use a new Texas law that allows regulated water companies to pay a fair market value for the purchase of water and wastewater systems. The Commons’ system serves approximately 1,000 homes in the development. (NYSE: WTRG) today announced that its Aqua Texas water utility has acquired the water treatment and distribution system in The Commons of Lake Houston community in Huffman, Texas yesterday. BRYN MAWR, Pa., August 03, 2021-( BUSINESS WIRE)-Essential Utilities Inc.

Aqua tech utilities