United Water Arkansas, a division of the United Water subsidiary of Suez Environnement, will be sold to Liberty Utilities Co. if the Arkansas Public Services Commission grants regulatory approval to the transaction.
United Water announced the agreement Friday, and United Water Vice President Gregory P. Wyatt and Manager Lester D. Melton met with area elected leaders and other officials to discuss the matter.
United Water provides water and related services to the cities of Pine Bluff and White Hall and the Hardin Water Association.
Liberty Utilities, a wholly-owned subsidiary of Canadian energy company Alqonquin Power and Utilities, has offered $28.6 million for United Water’s regulated water operations.
United Water provides domestic water service to about 49,000 people in Pine Bluff, sewer and solid waste billing services for the city of Pine Bluff, and has bulk water agreements with the city of White Hall and Hardin Water Association. The company has 13 wells, 388 miles of mains, and three water treatment facilities with a combined capacity of 20 million gallons per day.
Independent reporting for Pine Bluff & Jefferson County since 1879.
United Water is regulated by the PSC and Arkansas Department of Health.
Wyatt said the two companies will probably file jointly “within a week or so” for the PSC’s review of and determination on the proposed sale. He’s hopeful that the commission will make a decision within the final three months of the year, but said a conclusion might not be reached until the first quarter of 2013.
Wyatt said Liberty Utilities has indicated a commitment to maintaining the current United Water workforce and the employees’ present salaries.
“Our water quality should be maintained as well,” he said. “Our employees have done a perfect job here and we foresee them continuing to perform at the highest level. LU is committed to that as well.”
United Water customers will receive letters regarding the sale within the next month, based on the billing cycle, Melton said.
United Water Chief Executive Officer Bertrand Camus said in a news release that the United Water Arkansas sale “is consistent with the company’s strategy to optimize its portfolio of regulated companies and municipal contracts.”
“Arkansas regulated operations represent less than two percent of the company’s total regulated revenues, and this divestiture will enable capital reallocation while customers will benefit from continued quality service from a well-respected water provider,” Camus said. “We’re confident that our customers will be in good hands when this transaction closes.”
According to a company web site, Liberty Utilities provides water, gas and electric distribution services to small and mid-sized communities across the U.S. The web site also states that the agency “promotes local conservation and energy efficiency initiatives and programs for businesses and residential customers, including the low-income sector.”
The company counts more than 330,000 customers in Arizona, California, Illinois, Iowa, Missouri, New Hampshire and Texas.