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Citizens Energy agrees to document utility savings

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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.
 

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  • 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.

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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