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PHILADELPHIA SUBURBAN WATER TO BUY THIRD WATER COMPANY WITHIN ONE YEAR

 BRYN MAWR, Pa., July 21 /PRNewswire/ -- Officials of the Philadelphia Suburban Water Company (PSW), the main subsidiary of Philadelphia Suburban Corp. (NYSE: PSC) today announced that it has signed a letter of intent to purchase the Malvern Borough Water System, which serves the community's 4,000 residents, for approximately $1.3 million.
 A full agreement of sale is anticipated by both parties this fall following the completion of "due diligence" by PSW and the necessary franchise approval by the Public Utilities Commission, making Malvern the third water system to be acquired by PSW within 12 months. The company purchased both the Uwchlan and West Whiteland water systems late last year.
 Malvern officials said that the decision to sell the water system was based on the prohibitive expense that the Borough would have had to incur to bring its water system into compliance with the regulations of the Clean and Safe Drinking Water Acts. Those costs could have reached as much as $2 million and caused customer rates to double.
 PSW officials said that Malvern Borough was faced with a decision similar to that of numerous other small water utilities in the area on whether to spend millions of dollars on new treatment and filtration facilities necessary to meet increased federal regulations -- a choice that would significantly increase customer rates -- or to sell to a larger, regional utility that already has such facilities in place.
 The Malvern purchase is part of PSW's corporate strategy to acquire more water systems in southeastern Pennsylvania in an effort to increase its revenues while keeping rate increases to a minimum by spreading its fixed costs across a larger number of customers.
 Philadelphia Suburban Water Company (PSW) is the third largest fully integrated, investor-owned water company in the country and the largest in Pennsylvania, serving 800,000 residents in Chester, Delaware and Montgomery counties.
 /delval/
 -0- 7/21/93
 /CONTACT: Donna Alston, director of corporate communications of Philadelphia Suburban Water, 215-645-1095/
 (PSC)


CO: Philadelphia Suburban Water Company; Malvern Borough Water System;
 Philadelphia Suburban Corporation ST: Pennsylvania IN: UTI SU: TNM


MP-CC -- PH013 -- 3892 07/21/93 11:15 EDT
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Publication:PR Newswire
Date:Jul 21, 1993
Words:353
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