Wednesday, March 10, 2010

Mayor Ballard Announces Innovative Partnership with Citizens Energy Group

Mayor Greg Ballard signed a memorandum of understanding (MOU) today to transfer the City of Indianapolis' water and wastewater utilities to Citizens Energy Group (Citizens), a public charitable trust operating like a not-for-profit for community benefit.

"With this agreement, I am rejecting private ownership of our water and wastewater system while embracing the benefits that come from private sector efficiency and expertise, and putting water and wastewater utilities under a public trust," Mayor Ballard said. "We look forward to working with the City-County Council and the IURC to complete the transfer and realize benefits for utility customers throughout Central Indiana."

Pending negotiation of final agreement and Board of Waterworks, Board of Public Works, City-Council Council and IURC approval, the City will receive more than $425 million in connection with the transfer of the utilities to Citizens. Upon receipt of necessary approvals and negotiation of final agreements, the City will receive a $262.6 million payment from Citizens ($170.6 paid at closing and $92 million paid on October 1, 2011), plus up to an additional $50 million from the wastewater general fund that will remain with the City upon the transfer of the wastewater system.

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