How Aqua America's Shareholders Benefit From Infrastructure

The video discusses the similarities between natural gas and water utilities, emphasizing the need for infrastructure replacement. It covers regulatory approvals and investment recovery, highlighting the importance of safety and return on investment. The discussion extends to water quality improvements and infrastructure investment, focusing on accretive investments and shareholder value. Future investments and market activity in utilities are also explored, with a focus on privatization and regulatory advantages.

What is a key similarity between natural gas and water utilities?

• Both are primarily concerned with electricity distribution.

• Both involve the transportation of a natural product through pipelines.

• Both have no regulatory oversight.

• Both are heavily reliant on renewable energy sources.

Why do regulators encourage the replacement of old utility pipes?

• To reduce the number of utility companies.

• To ensure safety and reliability of the utility services.

• To promote the use of renewable energy.

• To increase the cost of utilities for consumers.

How do utility companies recover their investment in infrastructure?

• By selling off parts of the company.

• By reducing the quality of service.

• Through a surcharge approved by regulators.

• By increasing the price of water and gas.

What is a critical factor for a utility acquisition to be successful?

• Increase in consumer prices.

• Expansion into international markets.

• Reduction in workforce.

• Immediate accretion to earnings.

What advantage do regulated utilities have in terms of acquisitions?

• They can operate without any regulations.

• They face fewer antitrust limitations.

• They can set their own prices without oversight.

• They have unlimited access to government funding.