CHICAGO - The city of Westfield in Indiana has signed a memorandum of understanding with Citizens Energy Group to sell its water and sewer system to the non-profit utility, which is the entity that purchased Indianapolis’ water and sewer systems in a high-profile transaction last year.
Citizens would pay $91 million in upfront cash to the city for the two systems, according to city officials.
Westfield would use the money to pay off all of the city’s utility-related debt, which totals $45 million. The rest of the proceeds would be used to fund various capital infrastructure projects.
Citizens, which purchased Indianapolis’ systems in 2011 for $1.9 billion, was one of three bidders to respond to Westfield’s April request for proposals, the city said.
The Westfield City Council and the Indiana Utility Regulatory Commission still need to approve the deal. The city plans to hold a series of public meetings on the proposal throughout October.
“The transfer of our utilities will allow us to pay off our debt, invest in needed improvements to relieve congestion and improve access, all while partnering with an experienced and trusted utility partner that will provide outstanding customer service and operational savings to hold down future water-rate increases,” Westfield Mayor Andy Cook said in a statement.
Citizens has agreed not to lay off any employees if the deal is approved.