UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
     Date of report (Date of earliest event reported): May 20, 2005
Connecticut Water Service, Inc.

(Exact Name of Registrant as Specified in Its Charter)
Connecticut

(State or Other Jurisdiction of Incorporation)
 	 	 	
0-8084	 	06-0739839	
 	
(Commission File Number)	 	(IRS Employer Identification No.)	
 	 	 	
93 West Main Street, Clinton, Connecticut	 	06413-0562	
 	
(Address of Principal Executive Offices)	 	(Zip Code)	
860-669-8630

(Registrant’s Telephone Number, Including Area Code)
N/A

(Former Name or Former Address, if Changed Since Last Report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
      o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
      o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
Item 8.01. Other Information
     Connecticut Water Service, Inc. (the “Company”) announced that it has completed the previously announced sale of the assets of its Massachusetts’ subsidiary, The Barnstable Water Company to the town of Barnstable, Massachusetts.
     A copy of the Company’s press release dated May 20, 2005 is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
[Item 9.01. Financial Statements and Exhibits
     (c) Exhibits. 

Exhibit No .	 	Exhibit	
99.1	 	Company Press Release regarding completion of Barnstable subsidiary asset sale, dated May 20, 2005 (furnished herewith).	
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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 	CONNECTICUT WATER SERVICE, INC.
a Connecticut corporation
 	 	
Date: May 23, 2005 	By:  	/s/ Peter J. Bancroft  	 	
 	 	Name:  	Peter J. Bancroft 	 	
 	 	Title:  	Assistant Treasurer and Controller 	 	
 	
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EXHIBIT INDEX

Exhibit No.	 	Description	 	Page No.	
99.1	 	Company Press Release regarding completion of Barnstable subsidiary asset sale, dated May 20, 2005 (furnished herewith).	 	 	5	 	
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EXHIBIT 99.1

			
May 20, 2005	 	IMMEDIATE RELEASE	
CONNECTICUT WATER SERVICE, INC. SELLS WATER ASSETS IN
MASSACHUSETTS TO THE TOWN OF BARNSTABLE
Clinton, Connecticut, May 20, 2005 – Connecticut Water Service, Inc. (NASDAQ:CTWS) announced that it has completed the previously announced sale of the assets of its Massachusetts’ subsidiary, the Barnstable Water Company to the town of Barnstable, Massachusetts. The water utility provides water service to over 7,200 residential, commercial, and public authority billing customers in Barnstable and Hyannis.
The Barnstable Water Company received $10.0 million in gross proceeds from the sale of its water utility assets. As part of the transaction the Barnstable Water Company entered into a contract with the Town to provide full operating and management services for the Barnstable water utility operation. Under this full service contract, the customers will continue to receive the same full range of field and customer services presently provided by the Barnstable Water Company.
The Town is also scheduled to acquire 109 acres of non-watershed land from BARLACO, another Massachusetts subsidiary of Connecticut Water Service, Inc. for an additional $1.0 million in early 2006.
In commenting on the sale, Marshall T. Chiaraluce, the Company’s Chairman and CEO, said, “With the sale of the water company’s assets behind us, we can now concentrate on what we do best, which is to provide excellent water service. The change in the ownership of the assets should be transparent to the system’s water customers who will continue to receive the same high quality of service as they received from us before the sale.”
The Company expects to record an after-tax book gain of approximately $2.6 million from the sale of the Barnstable Water Company’s assets.
# # #
News media contact:
David C. Benoit
CFO and Vice President Finance
Connecticut Water Service, Inc.
93 West Main Street, Clinton, CT 06413-1600
(860) 669 8630 Ext. 3030
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.
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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, increased compliance costs related to the Sarbanes-Oxley Act of 2002, and 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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