The Best Choice to Own and Operate Indianapolis Water and Wastewater Systems

Citizens Energy Group has signed a memorandum of understanding with the Mayor of Indianapolis to transfer the City’s water and wastewater utilities to Citizens. For more information about the proposed utility transfers, see the news release and the City of Indianapolis website.

1. Citizens ensures the water and wastewater systems are kept under local, public ownership to be managed like a not-for-profit only for community benefit, rather than for the benefit of out-of-town stockholders as would occur through privatization.

Locally owned and managed – Owned by the people of Indianapolis for 123 years, Citizens Energy Group is managed by a non-partisan Board of Directors that focuses on the needs of customers and the community, rather than on the financial demands of stockholders. Citizens Board members receive modest compensation and are very involved in the current management and long-term direction of our company. Further accountability is ensured because utilities under Citizens are regulated by the Indiana Utility Regulatory Commission, with oversight by the Indiana Office of Utility Consumer Counselor.
Community investment partner – Citizens has put nearly $50 million of revenue from non-utility companies back into the community over the past decade to fund gas customer rate reductions, low-income energy assistance, home weatherization programs, community redevelopment projects and donations to non-profit organizations.
Financial stability – Citizens has a long history of solid financial management. Diversified operations, prudent debt structure and conservative debt service ratios help ensure financial integrity and stability. In 2009, Citizens effectively refinanced debt and implemented a freeze on salaries to hold the line on operating costs and fulfill its obligations to its retirees.

2. Citizens will provide outstanding service with the lowest possible rates, thereby keeping Central Indiana an affordable place to live while enhancing economic development.

Operates like a not-for-profit – The 123-year-old Citizens Charitable Trust operates like a not-for-profit solely for the benefit of customers and the community. Transferring the water and wastewater systems to Citizens will result in rates approximately 25 percent lower by the year 2025 than any other option available to the City.
Operational coordination – Approximately $40 million in annual savings will be achieved by coordinating operations and sharing services among the combined gas, steam, chilled water, water and wastewater utilities.
Access to tax-exempt financing – Citizens also will generate savings because it has access to tax-exempt financing, which provides lower borrowing costs than private and investor-owned utilities could achieve.
Customer satisfaction and operational excellence – Due to loyal, dedicated employees with an unwavering commitment to service, Citizens is an industry leader for customer satisfaction, according to surveys by J.D. Power & Associates and Market Strategies International. Citizens Gas also ranked first or second in 2008 across operational, financial and customer satisfaction categories in a utility benchmarking study with the Indiana Office of Utility Consumer Counselor.

3. Transfer of the water and wastewater systems to Citizens will be fair to all involved.

Fairness to customers and the City – The transfer agreement ensures financial benefits to utility customers, while providing funding to the City for badly needed infrastructure investments such as improvements to streets, bridges and sidewalks.
Transfer can be verified and approved – The transfer agreement is based on a professional, objectively verified valuation of the water and wastewater systems. The stated value of the water and wastewater systems is based on the reasonable cost of providing water and wastewater services to the people of Central Indiana. Because of the fair, reasonable terms of the transfer agreement with the City, Citizens is confident the agreement can be approved by the City-County Council and the Indiana Utility Regulatory Commission.