Council deadlocks on Citizens Energy letter of agreement after questions about rates, contribution and 25-year term

The Zionsville Town Council on March 2 deadlocked 3-3 on a second-reading ordinance (2025-27) that would approve a letter of agreement between the Town of Zionsville and Citizens Energy to assume service rights tied to Hamilton Southeastern’s customer territory agreement (CTA). The tie vote means the council moved the item for further consideration at its next meeting.

Councilors raised persistent questions about a rate-comparison packet submitted by local landowners that showed large differences between TRICO/Trio and investor-owned utilities. Vice President Burke and others asked Citizens and utility leaders to explain how rates can vary so widely when some utilities fall under Indiana Utility Regulatory Commission oversight and some do not.

A Citizens representative told the council Citizens Wastewater Westfield is subject to IURC jurisdiction for rates and noted that not all providers are regulated the same way; that, combined with different cost structures, metered vs. fixed charges and system-development charges, can produce materially different bills. "Citizens is subject to Indiana Utility Regulatory Commission jurisdiction for the purposes of setting its rates. Trio is not," the representative said.

Ed Bavak, identified as director of Westfield Utilities, told the council that Citizens spreads developer connection fees over new lots rather than collecting them upfront and pointed to revenue allowances Citizens offers as a way to reduce upfront developer cost. "We estimate about $6 million of infrastructure cost," Bavak said, adding that Citizens has committed $3 million toward those costs under the proposed agreement.

Corby Thompson of HSC Utilities described wholesale and retail differences, saying his wholesale treatment charge to HSC customers is about "$3.20 per thousand gallons" and explaining that fixed versus metered billing and assumptions about gallons-per-day can change apparent monthly costs on a comparative chart.

Several council members said they were weighing how a 25-year clawback provision in the letter agreement — which would allow the town to reclaim the area if it chooses to serve it later — would affect long-term options. A councilor noted the 25-year term "felt like a lifetime" for the community; Citizens said the 25-year term reflected the utility's investment-recovery assumptions.

Councilors also discussed consequences of a 'no' vote: officials said Hamilton Southeastern could still build collection main extensions and purchase wholesale treatment, which would leave customers served by HSC retail rates and forgo Citizens’ revenue allowances and the $3 million commitment.

Motion and vote: Counselor Melton moved to approve Ordinance 2025-27; Counselor Norris seconded. A roll-call vote resulted in three yes votes (Vice President Burke, Counselor Melton, Counselor Norris) and three no votes (President Plunkett, Counselor Samson, Counselor Moldary). The council did not adopt the ordinance and scheduled further consideration at the next regular meeting.

What’s next: The council carried the item forward for additional review and said it would return at the council’s next meeting for further consideration.

(Reporting note: quotes and attributions come from the March 2 council meeting transcript; IURC and CTA were referenced during the discussion.)