City Of Fishers Announces Intent To Purchase Portion Of HSE Utilities, No Rate Increase Anticipated

Press release from the City of Fishers:

July 9, 2021

HSE Utilities has determined, subject to the approval of the IURC, to transfer substantially all of its assets for the Fishers Service Area to the City pursuant to an asset purchase agreement. Fishers has agreed to purchase the assets for $90 million, as may be adjusted in accordance with the agreement, which is less than the appraised value of the assets. The City anticipates issuing sewage revenue bonds to finance the acquisition and does not anticipate raising user rates to complete the financing.

“Through this acquisition, the City can make a strategic investment to provide its community with complete ownership over all sewer assets within Fishers,” said Fishers Mayor Scott Fadness.

“Due to strategic investments in our municipal utility and the expertise of our staff, the City is well prepared to consolidate the utilities and provide consistent service and support for all Fishers residents. To be able to finance this purchase without a single penny of increased rates while maintaining the level of service is a real win.”

In addition to currently treating the effluent of over 25,000 HSE customers, the City provides collection and treatment service to approximately 6,500 municipal utility customers. The City reasonably expects to gain certain operational efficiencies by consolidating both utilities.

The IURC will set an evidentiary hearing to review HSE Utilities’ petition this fall. The City will seek approval of the acquisition with its Board of Public Works and Safety and City Council throughout the coming months. Subject to the IURC’s approval, the parties anticipate closing on this transaction by the end of the year, and the City anticipates serving HSE Utilities’ customers on January 1, 2022.

For more information, visit fishers.in.us/HSEUtilities.

This press release was produced by the City of Fishers. The views expressed here are the author’s own.