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Highlights

The Dividend Reinvestment and Common Stock Purchase Plan (the “Plan”) of Connecticut Water Service, Inc. (the “Company”) provides the Company’s (i) record shareholders; (ii) customers and employees of the Company’s regulated water utility subsidiaries, including The Connecticut Water Company (“CWC”), The Maine Water Company (“MWC”), The Heritage Village Water Company (“HWVC”), and the Avon Water Company (“AWC”) and any other regulated water utility acquired by the Company, and (iii) other persons with automatic dividend reinvestment of all or a percentage of cash dividends paid on our Common Stock in additional shares of Common Stock and investment of optional cash payments of an aggregate from $50 to $17,500 per calendar quarter in Common Stock of the Company.

Participants pay NO brokerage commission or service charge upon the purchase of shares. The Company will receive all of the net proceeds from the sale of shares of Common Stock under the Plan.

Shares of Common Stock may be purchased by the Agent for the Plan in the open market, in privately negotiated transactions or directly from the Company.

Features

A record shareholder, customer or employee or other person described in the Prospectus (Question 4) who participates in the Plan (a “Participant”) will obtain the following advantages:

(a) Participants may have all or a percentage (50% or any higher even multiple of 10%) of their cash dividends on shares of Common Stock registered in their name and all cash dividends on shares credited to their Plan account automatically reinvested in Common Stock at 100% of the market price, subject to discount as more fully explained in the Prospectus (Question 13). No commission or service or other change will be paid by Participants in connection with the dividend reinvestment option of the Plan.

(b) The Plan gives Participants a convenient, systematic way of purchasing shares of the Company’s Common Stock. Participants may, in addition, invest monthly in additional shares of Common Stock by making optional cash payments of at least $50 and not exceeding $17,500 per calendar quarter. The purchase price of the shares purchased with optional cash payments pursuant to the Plan will be 100% of such market price subject to discount as more fully explained Prospectus (Question 13). Optional cash payments may be made by check or automatic account withdrawal.

(c) Residential utility customers of the Water Companies, including all members of households served by the Water Companies, and full-time employees of the Water Companies who (in either case) reside in states in which the Water Companies conduct business or have operations who do not presently own shares of Common Stock may become Participants by making an initial cash investment of at least $50 to purchase shares under the Plan.

(d) A Participant will pay no brokerage commissions or service charges in connection with purchases made under the Plan.

(e) The Company may, from time to time, make shares available to Plan Participants at a discount from market prices. Please see the Prospectus (Question 13) for an explanation of the discount.

(f) A Participant’s funds will be fully invested because the Plan permits fractions of shares to be credited to a Participant’s account. Dividends on such fractions will be reinvested in additional shares or fractions thereof and such shares credited to a Participant’s account.

(g) Participants can own and transfer shares of Common Stock without holding certificates for shares purchased through the Plan. In addition, since the Plan Agent that administers the Plan holds and acts as custodian of shares purchased under the Plan, a Participant may also elect to deposit certificates for shares of Common Stock held in his or her name with the Plan Agent. This relieves a Participant of the responsibility for the safekeeping of certificates and protects such Participant against loss, theft, or destruction of such certificates.

(h) Regular statements of account will provide Participants with a record of each transaction to simplify recordkeeping.

(i) A Participant may choose to establish an Individual Retirement Account (“IRA”) through a custodian (Prospectus Question 25) and to contribute or roll over amounts to the IRA through a Plan account. See the Prospectus (Question 10) for a discussion of the disadvantages and risks relating to the Plan.

Eligibility

Shareholders: All registered owners of Connecticut Water Service, Inc. common stock are eligible to participate in the Plan. Beneficial owners of Common Stock who hold their shares through a bank, broker, nominee, or trust, etc., must become a shareholder of record in their own name, or make appropriate arrangements, if possible, with their bank, broker, nominee or trust to enroll in the Plan or can enroll in the Plan as provided under the heading “Other Persons” below.

Customers: All residential utility customers of the Company’s regulated water subsidiaries, The Connecticut Water Company (“CWC”), The Maine Water Company (“MWC”), the Heritage Village Water Company (“HVWC”), the Avon Water Company (“AWC”) and any other regulated water utility owned by the Company or CWC (each a “Water Company”, and collectively, the “Water Companies”) are eligible to participate in the Plan, as well as all members of households served by the Water Companies. Water consumers in the franchise territories served by the Water Companies who are not customers, such as renters and condominium owners, may participate in the Plan, except that groups of individuals such as tenant associations are not eligible to participate. All Customer Participants must reside in a state in which a Water Company does business or has operations. Business customers of the Water Companies are not eligible to participate in the Plan.

Employees: All full-time employees of the Water Companies (referred to herein as “Employees”) are eligible to participate in the Plan.

Other Persons: Any individual person who is not currently a record shareholder of the Company’s Common Stock or a Customer or Employee may elect to enroll in the Plan by following the enrollment procedures and making payment to the Plan Agent of an initial cash investment of not less than $500, as stated in the Plan Prospectus.

Administration

Broadridge Corporate Solutions, Inc. has been designated by the Company as the agent to administer the Plan for Participants, to purchase and hold shares of Common Stock acquired through the Plan, to maintain records, to send statements of accounts to participants, and to perform other duties relating to the Plan.

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