Indiana Utility Regulatory Commission
302 West Washington Street, Room 306
Indianapolis Indiana 46204
317.232.2297 office
317.233.1982 fax
www.state.in.gov/iurc
March 5, 2002
IURC APPROVES
SALE OF HAMILTON WESTERN UTILITIES, INC.
TO THE CITY OF
CARMEL AND THE TOWN OF WESTFIELD
The Indiana Utility
Regulatory Commission approved the transfer of water and sewer assets from
Hamilton Western Utilities in part to the city of Carmel and in part to the
town of Westfield on Friday. The terms
and conditions or the sale are the result of a settlement agreement between
Hamilton Western Utilities, Inc., the city of Carmel, the town of Westfield and
the Indiana Office of Utility Consumer Counselor.
In Cause No. 42127,
the Commissioners agree that it is in the best interest of customers of the
utility to allow the sale.
Carmel will
purchase the plant, equipment and the water customers served by Hamilton
Western Utilities in Clay Township, Hamilton County, Indiana, which includes
approximately 2, 268 customers. The
water lines, mains and easement rights are located south of 146th
Street in Hamilton County. The city of
Carmel has been given approval to issue up to $4 million in bonds to finance
the acquisition. The rates proposed for
customers acquired by Carmel are the same as the rates currently charged by
Hamilton Western Utilities. Carmel is
not asking for a rate increase and under the terms of the settlement, will not
seek a rate increase for two years. Carmel has also made arrangements to
purchase a water supply on a wholesale basis from the town of Westfield to
assure uninterrupted service for its customers.
Westfield will purchase
a portion of Hamilton Western Utilities’ water assets and all of its sewer
assets, including plant, equipment and more than 3,200 customers located north
of 146th Street. The
purchase price is approximately $10 million for the wastewater utility assets
and facilities and $8 million for the water utility assets and facilities. In testimony before the Commission Westfield
officials indicated that the town has offered employment to key employees of
Hamilton Western Utilities to maintain a staff directly familiar with operation
and maintenance of the facilities.
Reasons given for the purchase included a desire to maintain local
ownership of the utility, and to keep customers or Hamilton Western Utilities
from facing a possible 40% to 50% rate increase. In the settlement agreement, Westfield indicated it has no plans
to raise rates for water or sewer for a period of two years.
Hamilton Western’s
certificate of territorial authority will be surrendered and its existing
certificates of necessity will be deemed cancelled when it provides written
notice to the Commission that financing has been finalized and its assets have
been sold.
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