Indianapolis wants to sell water and sewer utilities for $1.9B

[IndianaGreen]

Put a Republican in office and the first thing we get, other than tax breaks for the rich, is privatization and degradation of whatever public services are left.

Ballard moves ahead on $1.9B utility deal

Citizens Energy Group wants to buy water, sewer systems

By Francesca Jarosz
Posted: March 10, 2010

Indianapolis Mayor Greg Ballard and other city officials this morning announced their plans to move forward on a sale of the city's water and sewer utilities in a $1.9 billion transaction.

Under the deal, Citizens Energy Group, a public charitable trust and local provider of gas, steam and chilled water, would acquire Indianapolis' water and sewer utilities, which now are owned by the city and run by private operators. Citizens would and have full control over their operations and be responsible for hundreds of million in capital projects in coming years.

The city expects to get about $425 million from the deal to use toward repairing roads, bridges and sidewalks. Citizens also will assume about $1.5 billion in debt form both utilities.

During a news conference, Ballard touted the move as a government reform effort that would take decisions about the utilities, such as how much rate increases are and when they are requested, out of the hands of politicians. Instead, they would be left up to Citizens' board of directors, whose meetings and documents are public because of Citizens' governance structure.

"At the heart of our discussions with Citizens Energy Group is my determination to reform municipal government and address the needs of water and wastewater ratepayers," Ballard said. "No more politicians putting off doing what's right for the long term for what's politically expedient today."

http://www.indystar.com/article/20100310/LOCAL18/3100337/City-wants-to-sell-utilities-for-1.9B

[LiberalFighter]

1. The money should not be used for anything but utilities.

As for the claim that it would be out of the hands of politicians to decide the rate hikes. Preposterous!! He just means that that local politicians won't have to take the heat for necessary rate hikes. Does he also believe that the Utility Regulation agency won't have to sign off on any hikes?