Feature

Indianapolis council backs $1.9B utilities sale 7.27.10

The Indianapolis City-County Council has approved a $1.9 billion deal to sell the city's water and sewer utilities to the nonprofit trust that provides local natural gas service.

The council voted 19-10 Monday night to endorse the plan proposed by Republican Mayor Greg Ballard. The proposed purchase by Citizens Energy Group now goes to the Indiana Utility Regulatory Commission for its review.

Ballard says the city will receive at least $425 million from Citizens, with the company taking over about $1.5 billion in debt obligations. Ballard plans to use the money for projects such as street and bridge improvements and vacant home demolitions.

Democratic council minority leader Joanne Sanders argued the deal gives Citizens too much freedom to sell water company property and doesn't provide enough public accountability.

http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=indystar&sParam=34142439.story