Connecticut
Water Service, Inc. Appoints New President/CEO
January
12, 2006, Clinton, Connecticut - The Board of Directors
of Connecticut Water Service, Inc. (NASDAQ:CTWS) at its Board
meeting on January 11, 2006, unanimously approved the appointment
of Eric W. Thornburg as President and Chief Executive Officer
and a Director of the Company. He will assume the President/CEO
position at Connecticut Water on March 1, 2006.
Mr.
Thornburg, 45, was selected for the post after an extensive
national search to find the successor to Marshall T. Chiaraluce,
63, who has been President/CEO and Chairman of the Board since
1992. Mr. Chiaraluce will remain full time Chairman of Connecticut
Water until his retirement from the Company and the Board
of Directors in the spring of 2007.
Mr.
Thornburg was most-recently President of Missouri-American
Water, a subsidiary of American Water Works Corporation. He
currently leads all Government and Regulatory Affairs for
American Water’s central region, spanning 15 states
in the Midwest. At Missouri-American Water, the utility provides
service to 1.3 million people, and Mr. Thornburg led a workforce
of 650 employees. During his four years at Missouri-American
Water, he was primarily responsible for growing revenues and
net income by approximately 30%. He has also held leadership
positions at American Water in Indiana and Pennsylvania.
American
Water has operations in 29 states and generates over $2 billion
a year in water revenue. In 2003, American Water was acquired
by the German-based conglomerate RWE, a Global 100 company
with $57 billion in revenue.
Mr.
Thornburg has a Bachelor’s degree from Cornell University
and an MBA from Indiana Wesleyan University. He and his family
will be relocating to Connecticut from Missouri.
In
commenting on Mr. Thornburg’s appointment, Mr. Chiaraluce,
Chairman of the Board, stated that “Eric has spent his
entire working career in the water industry. He has a wealth
of experience in delivering operating results, building teams,
and relating with regulatory agencies. Throughout his career
his integrity, character, and effective style have served
him well in leading water utility operations much larger than
ours. We are fortunate to have attracted Eric to Connecticut
Water. He is exactly what we need to continue our progress
and to meet the challenges and growth opportunities of the
Company.”
During
his tenure as CEO, Mr. Chiaraluce, is credited with initiating
the Company’s first strategic plan, and through its
implementation the Company has produced 13 consecutive years
of record earnings and increased dividends while improving
customer service. The Company has grown from 58,000 to over
80,000 customers, in 41 Connecticut towns, has acquired 12
water utilities, and has developed other financially successful
unregulated businesses under his leadership.
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FOR MORE INFORMATION
Michele
G. DiAcri
Corporate Secretary
Connecticut Water Service, Inc.
93 West Main Street
Clinton, CT 06413-1600
800.428.3985, Ext. 3015
mdiacri@ctwater.com
Connecticut
Water Service, Inc. is the largest, domestic-based, investor-owned
water utility in New England. It provides water to over 80,000
customers in 41 towns in Connecticut, as well as providing
water-related services under contract in municipalities and
companies.
This
press release may contain certain forward-looking statements
regarding the Company’s results of operations and financial
position. These forward-looking statements are based on current
information and expectations, and are subject to risks and
uncertainties, which could cause the Company’s actual
results to differ materially from expected results.
Our
water companies are subject to various federal and state regulatory
agencies concerning water quality and environmental standards.
Generally, the water industry is materially dependent on the
adequacy of approved rates to allow for a fair rate of return
on the investment in utility plant. The ability to maintain
our operating costs at the lowest possible level while providing
good quality water service is beneficial to customers and
stockholders. Profitability is also dependent on the timeliness
of rate relief, when necessary, and numerous factors over
which we have little or no control, such as the quantity of
rainfall and temperature, industrial demand, financing costs,
energy rates, tax rates, stock market trends which may affect
the return earned on pension assets, and compliance with environmental
and water quality regulations. The profitability of our other
revenue sources is subject to the amount of land we have available
for sale and/or donation, the demand for the land, the continuation
of the current state tax benefits relating to the donation
of land for open space purposes, regulatory approval of land
dispositions, the demand for telecommunications antenna site
leases and the successful extensions and expansion of our
service contract work. We undertake no obligation to update
or revise forward-looking statements, whether as a result
of new information, future events, or otherwise.
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