April 4, 2001

IURC APPROVES SALE OF SEYMOUR’S FREEMAN FIELD SYSTEM

TO INDIANA AMERICAN WATER

Today the Indiana Utility Regulatory Commission approved the sale of the water utility properties of the City of Seymour, which serve the Freeman Field Municipal Airport and the adjoining Industrial Park to the Indiana American Water Utilities.

In Cause No. 41655, the purchase was the result of a settlement agreement between Indiana American Water, and intervenors: Valeo Sylvania LLC, the City of Seymour and the Seymour Airport Authority.

The Freeman Field System serves 68 customers, which are all industrial or commercial. The U.S. Army Corps of Engineers constructed the system in 1943. Freeman Field originally served as a military base. The base was decommissioned in 1948 and the land was annexed into the city in 1990. Since that time it has been controlled by the city’s Airport Authority.

The Commission finds the sale is in the public interest and notes that those now served by the Freeman Field System will receive better quality service. In testimony before the IURC Seymour Mayor John Burkhart said the short- and long-term infrastructure needs of the Freeman Field System are beyond what the city is willing to commit.

Under the terms of the agreement the purchase price is $1,153,429. The Airport Authority will place the proceeds of the sale in an interest-bearing account. The interest will be used to fund operations at Freeman Field.

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