Aqua Pennsylvania and Chester Water are apparently not playing nicely together. According to the Daily Local News, Aqua PA has filed suit against CWA over their agreement with the city of Chester. Because Aqua has an existing agreement with CWA which constitutes four system connections, any rate change that is approved trickles downstream, literally. (pardon the pun)
Marc Lucca, President of Aqua Pennsylvania has expressed his serious concerns over the 10% rate hike due to a settlement with the city of Chester which tops off over $60 million dollars. The trickle is actually an understatement. This action produces approximately $75,000 of additional pass-through costs to current Aqua customers with no perks whatsoever.
Aqua has already begun efforts to build their own pipelines in Ridley Township and Nether Providence, putting CWA on notice that they’re terminating their contracts for those municipalities.
Can this partnership be mended back together? According to Mr. Lucca, these irresponsible rate hikes are causing huge trust issues. Because CWA is not governed by PUC, they have the capacity to bump up their rates whenever they feel like it. We’ll see what the Delaware County Common Pleas Court ruling determines.
(References: Daily Local News ~ dailylocal.com)
As we dove into 2015’s waters, investment capital stats were already at in influx. The US has traditionally been a favorite depository for said capital. With US Treasury Rates on a decline due to demand and the US Stock Exchange experiencing new elevations, commercial real estate is an attractive invitation for both foreign and domestic investors. The evidence of this is the growth of overall commercial property transactions in the US by foreign investors has now arrived at a level that we haven’t seen since 2006/2007. Firms aim a close eye at interest rates and market stability as they compare these current statistics with historical data. The timing for interest increases is concerning for most, and whether long term and short term rates will increase in a united or disjointed manner. A majority of soothsayers, (correction: forecasters), hold the belief that the Federal Reserve will raise rates Summer of 2015. Out of the estimated $5 trillion plus capital invested in the United States, over $3 trillion is debt-driven. Commercial real estate loans are steadily gaining as per the Feds, with private equities and REIT’s in the lead. There is speculation that we will see a “re-do” of 2006 where large sums will be reinvested into #cre in 2015 if all goes according to pattern. Is your brokerage positioned for these potential opportunities? Are you as an investor positioned to take advantage of this stimulative climate and seize the day?