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River Falls council approves due diligence to explore buying Saint Croix Gas
Summary
The River Falls Common Council voted July 28 to authorize the city administrator to pursue due diligence — including a cost‑of‑service study and legal review — and prepare for the Public Service Commission review and a city referendum on a potential purchase of Saint Croix Gas.
Utility Director Kevin Westhouse told the council the city has a willing seller and staff negotiated a purchase price of $6,400,000 for Saint Croix Gas LLC, which serves roughly 10,000 gas meters. Westhouse said the purchase would include real estate, equipment and the company’s operations, and that the transaction would require PSC review and a voter referendum under state statute.
"We negotiated a purchase price of 6,400,000," Westhouse said, describing the company’s 2025 operating revenue (reported to the PSC) of about $10,377,000 and net operating income after expenses of roughly $464,880. He and staff said the city expects to run a cost‑of‑service study, complete legal due diligence and work with the Public Service Commission before presenting a final question to voters.
City Administrator Scott Simpson and other staff told council members they expect most current Saint Croix Gas employees to be retained through a transition and discussed retention incentives as part of any asset purchase. Simpson and staff cautioned the council that the PSC could alter the purchase price as part of its regulatory review and that voters ultimately decide whether the city may proceed.
After questions about employee status, rate setting, long‑term demand and the regulatory sequence, a council member moved and another seconded a resolution authorizing the administrator to pursue due diligence and the necessary approvals toward a possible acquisition. The motion passed by voice vote.
Next steps staff identified include a formal cost‑of‑service study, detailed legal review of assets and easements, PSC filings, and preparation of materials for a community referendum if staff recommends moving forward.
