Citizens Energy board authorizes steps to acquire Whitestown water system, approves bond and interest-rate hedge

The board of directors for Citizens Energy Group and CWA Authority on Aug. 20 authorized management to pursue the acquisition of the Whitestown water system and approved three related resolutions: formation of an acquisition entity, an interest-rate hedge and a bond resolution authorizing up to $40 million in long-term debt.

Jay Ailey, Water Resources Executive, told the board Whitestown “currently serves over 6,000 customers” and has averaged about 1,500,000 gallons per day in water demand; the town’s system has grown roughly 9% per year, Ailey said. Management and Whitestown reached agreement on an asset purchase that Ailey summarized as including a $37,000,000 purchase price, a transfer of Whitestown customers to Citizens Water retail tariff rates and a plan for Whitestown employees to be either hired by Citizens or absorbed into other town government positions.

Th…