Our Company > News & Financials > News Releases > Citizens Energy Group Proposes to Acquire Ben Davis Conservancy District

Citizens Energy Group Proposes to Acquire Ben Davis Conservancy District

4/27/2022
 
INDIANAPOLIS – Citizens Energy Group announced today that it is proposing to acquire the Ben Davis Conservancy District (BDCD), a special taxing district that collects sanitary sewage from approximately 6,000 properties on the southwest side of Indianapolis. Citizens currently provides wholesale wastewater treatment service to BDCD. The district is owned by the property owners also known as freeholders.
 
Under the proposed offer made in a letter to the Ben Davis Board on April 21, Citizens would directly serve all Ben Davis customers under the utility’s current terms, conditions and rates as approved by the Indiana Utility Regulatory Commission. Citizens provided two acquisition options to BDCD leadership:
 
Option 1: One-Time Asset Purchase
  • Acquire all BDCD assets for $10 million paid at the time of closing.
  • Net proceeds from the sale of the assets may be distributed to BDCD freeholders in accordance with procedures deemed appropriate by BDCD leadership.
 
Option2: Customer Bill Credits and Asset Purchase
  • Acquire all BDCD assets for $15 million paid after closing through credits to BDCD customers over a 15-year period.
  • Estimated customer credit would be $22.50 per month.
 
“Both options for acquiring the Ben Davis Conservancy District assets would provide affordable service and other significant benefits to current Ben Davis customers,” said Jeff Willman, Vice President, Water Operations for Citizens.
 
Anticipated benefits from the proposed acquisition include:
  • Affordable Service - District customers that use 3,600 gallons/mo. (which is typical within the district) would receive a $53/month bill from Citizens. This amount would be reduced to $30.50 under option two, which includes the bill credit.
  • Avoid Treatment Plant Construction: The proposed acquisition would eliminate the need for a new wastewater treatment proposed by BDCD that would create sewer odors and negatively impact local neighborhoods and daily travelers on I-70.
  • Proceed Distribution - Net proceeds from an asset sale may be distributed to BDCD freeholders directly or through bill credits.
  • Regulated Rates and Charges – Citizens will provide retail service to all district customers based on current rates, charges and rules approved by the IURC.
  • Customer Assistance - Free home inspections will be offered for residential customers with above average water use and assistance with related home water efficiency improvement projects. Eligible customers will also be enrolled in Citizens’ Low Income Customer Assistance Program (LICAP) which offers wastewater bill credits and other home improvement options.
  • Excellent Service - Citizens’ service benefits include the full array of convenient bill payment options including an online portal for customers to manage their accounts, online payments, multiple payment sites, customer contact center support and 24x7 emergency response.
  • System Upgrades:  Citizens field crews will complete regular inspection, cleaning and maintenance of the Ben Davis collection system and complete necessary repairs and upgrades within the collection system to reduce stormwater inflows/infiltration and sanitary sewer overflows. 

About Citizens Energy Group

Citizens Energy Group provides safe and reliable utility services to about 800,000 people in the Indianapolis area. Citizens operates its utilities only for the benefit of customers and the community. Additional information is available online at Facebook - Twitter - LinkedIn - YouTube

Return to News Releases