August 15, 2001

IURC APPROVES FOX CHASE FARMS SETTLEMENT

Today the Indiana Utility Regulatory Commission approved a settlement agreement, which transfers the troubled Fox Chase Farms Utility to new ownership.

In Cause No. 41741, the Commissioners agreed that it is the best interest of the customers of Fox Chase Farms, in Porter County, to approve the transfer of ownership to Centurian Corporation.

The IURC was first made aware of a problem with the Fox Chase Farms Utility in May of 2000, in an action filed by the Indiana Office of the Utility Consumer Counselor. The OUCC alleged that the Utility, which operates a constructed wetland, was operating its sewage disposal service in an unreasonable, unsanitary and negligent manor, and asked for an investigation.

In the summer of 2001, the Utility and Centurian Corporation asked the Commission for permission to transfer the Certificate of Territorial Authority on the condition that the second wetland cell of the Utility is completed by December of this year.

Centurian is a privately held, for-profit corporation with the corporate authority to operate a sewage utility. Centurian has agreed to post a $100,000 bond, and will not raise rates for two (2) years. In addition Centurian will provide periodic reports to the Commission and intervenors about any complaints it may receive about the operations of the wetlands, and has agreed to complete the second wetland cell by this December. Within three (3) business days after the construction is completed, Centurian is to notify the Commission and the OUCC. Both will be allowed to inspect the construction.

The case against Fox Chase Farms Utility, Inc., brought by the OUCC is dismissed.

The order is effective immediately.

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