IBJNews

Citizens Energy agrees to document utility savings

Back to TopCommentsE-mailPrintBookmark and Share

A not-for-profit public trust that wants to buy Indianapolis' water and sewer utilities has agreed to document all of the savings it says the $1.9 billion deal would create.

Citizens Energy Group has agreed to document its claims that the proposed deal would reduce future rate increases and save $60 million a year. It agreed to do so under a settlement agreement announced Tuesday with three customer and consumer advocate groups.

If regulators approve the purchase, Citizens would submit public reports twice a year for four years.

But a key advocacy group, Citizens Action Coalition of Indiana, did not agree to the settlement and is still weighing its options. Its attorneys say requiring the new owner to document savings isn't enough.

Mayor Greg Ballard and Citizens announced plans for the transfer in March 2010. If the water and sewer transaction gets final approval, it could free up $435 million for city infrastructure and transfer $1.5 billion in utility debt to Citizens.

City leaders said the deal would curb projected rate increases and remove politics from utilities management by transferring authority to Citizens, a not-for-profit with a board whose appointments aren’t political.

But the deal has drawn critics, particularly those who question Citizens’ ability to generate the $60 million in annual savings the company has pledged it can produce to pay off the debt for the purchase.
 

ADVERTISEMENT

  • IURC Should Reject This Whole Deal
    What's the big deal about them documenting that they will have no cost savings after they have already merged?

    In fact, it doesn't take a accountant to see that after they pay the break up fee to Veolia and lawyer fees, it will actually cost more than changing nothing.

    To add insult to injury, they want to divert $435 million of water company proceeds into slush fund for other things instead of reinvesting water company proceeds to lower the projected 100%+ incease in water/sewer bills.

    This is a silly boondoggle that the IURC should immediately reject and have them bid out management of this city asset.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Yes sir keep cashing those 300K a year checks direct to IMS, while millions disappear from the teams like Rahal's. Guess there wasn't enough ka- ching going around to keep Sarah Fisher in business without their "merger". LOL._____.Meanwhile back in Realville the series with the "best racing in the world" drew what appeared to be about 5000 live spectators ( and probably 1500 of those Target "freebies", and was beaten in the ratings by a series that reportedly consists of "parades" and aired while most people are still sleeping. That will generate those big ka-chings for sure. :-). But, hey, as long as the Speedway gets the cash who gives a damn about the teams?

  2. Welcome to PETERSON LOAN AGENCY Company (A Personalized Service for All Your Financial Needs) We, Liberal Investment Company Providers offers loan at a very low interest rate of 2%, we offer Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Educational Loan, Home Loan, and Loan for any reason and urgent needs!. with a maximum duration of 30 years. Have you been turned down by your bank? Do you have bad credit? Do you have unpaid bills? Are you in debt? Do you need to set up a business? Worry no more as we are here to offer you a low interest loan. Our loan ranges from $5,000-USD (Five Thousand US dollars) to $50, 000,000.00.(Fifty Million US dollars). We also lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email: PETERSONLOANAGENCY@GMAIL.COM 1. Your Full names:_______ 2. Contact address:_______ 3. Country Of Residence:______ 4. Loan Amount Required:________ 5. Duration:_____ 6. Gender:_____ 7. Occupation:________ 8. Monthly Income:_______ 9. Date Of Birth:________ 10.Telephone Number:________ 11. Purpose of loan:_________ Yours In Service, MR PERRY, PETERSONLOANAGENCY@GMAIL.COM

  3. If I could actually get the prices...I would do this on my own. We need laws that force provides to publish the costs they will charge. Everyone else gives you the price in advance...except hospitals.

  4. I was under the impression that fencing is not allowed on a front yard and that on a corner, both sides are considered "front" yards, therefore can't be fenced without a variance. Also impedes the visibility for drivers at the intersection. Am I understanding this correctly? Might be why a fence was not included in the plans and a request for a variance will have to be made?.

  5. I was a big fan of Cowards and Carrots, which I got a chance to see at the show. It's currently on Kickstarter, but the designer also put out What's He Building in There last year, which got a fair amount of buzz.

ADVERTISEMENT