Indiana Utility Regulatory Commission
302 West Washington Street, Room 306
Indianapolis Indiana 46204
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.