United Water Arkansas, the company that provides water to White Hall and the Hardin Water Association, will be sold to Liberty Utilities Co. for $28.6 million if the Arkansas Public Services Commission authorizes the transaction later this year or in early 2013.
United Water, which operates 13 wells, 388 miles of mains, and three water treatment facilities with a combined capacity of 20 million gallons of water daily, is regulated by the PSC and Arkansas Department of Health.
White Hall began purchasing water wholesale from United Water in November 2011.
Gregory P. Wyatt, United Water vice president, indicated the two companies will likely file a joint petition seeking PSC’s review of the proposed sale. He said that while the commission may reach a decision within the final three months of the year, it could be the first quarter of 2013 before the transaction is approved.
United Water Manager Lester D. Melton and Wyatt announced the agreement Friday and said they had met with elected and appointed area officials to brief them on the proposed sale.
Independent reporting for Pine Bluff & Jefferson County since 1879.
Wyatt said Liberty Utilities has indicated a commitment to maintaining the current United Water workforce.
“Our water quality should be maintained as well,” he added. “Our employees have done a perfect job here and we foresee them continuing to perform at the highest level. (Liberty Utilities) is committed to that as well.”
United Water is a subsidiary of Suez Environment, while Liberty Utilities is a wholly-owned subsidiary of Canadian energy company Algonquin Power and Utilities. The latter company has more than 330,000 customers in Arizona, California, Illinois, Iowa, Missouri, New Hampshire and Texas.
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 statement 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 added. “We’re confident that our customers will be in good hands when this transaction closes.”