GREENWOOD, Ind., Dec. 5, 2002 -- The Indiana Utility Regulatory Commission (IURC) has concluded its review of the proposed acquisition of Indiana-American Water Works Company's parent company, American Water Works Company, Inc. by RWE AG/Thames.
Although the IURC does not have regulatory approval powers over the transaction, it did initiate an investigation earlier this year to determine its effect on Indiana customers and the quality of service of Indiana-American Water Company, Inc.
"We are pleased that this action by the Indiana Utility Regulatory Commission will allow us to move forward with full confidence that our customers will continue to receive excellent service at a fair and reasonable rate after the merger," said Indiana-American Water Company President John E. Eckart. "The Commission conducted a thorough examination of the transaction between American Water Works and RWE/Thames, and has concluded its investigation after amending an agreement between Indiana-American and the Office of Utility Consumer Counselor (OUCC) that puts safeguards in place that will protect the best interests of our customers"
"The associates of Indiana-American look forward to working with our new partners in meeting the needs of our customers today and in the years to come," said Eckart. "Indiana-American has always placed a strong emphasis on providing the highest quality water and service, an excellent value to our customers. This partnership will only enhance and strengthen our ability to serve the interests of our customers and associates."
"Indiana-American will continue to be strongly committed to preserving the environment, being a good corporate neighbor by participating in local events, and adding value to the communities in which we operate," he said. "Management decisions regarding customer service, water treatment and distribution will continue to be made at the local level as they always have. The same group of professionals who are operating our treatment facilities, monitoring water quality and performing service calls to our customers today, will be responsible for carrying out those functions once the transaction is complete."
In addition, Indiana-American Water Company will continue to be regulated by the Indiana Utility Regulatory Commission, the Indiana Department of Environmental Management (IDEM) and the U.S. Environmental Protection Agency (USEPA).
American Water Works first announced that it agreed to be purchased by RWE for approximately $7.6 billion in cash and assumed debt, on September 17, 2001. Under the agreement, RWE will purchase all outstanding shares of American Water Works at a price of US$46 per share in cash.
The transaction is expected to be completed in the first quarter of 2003 once all the necessary regulatory approvals have been received.
Indiana-American Water Company currently serves more than 700,000 residents (269,000 customers) in 35 cities and towns throughout the state, and is a subsidiary of American Water Works Company. American Water Works Company is the largest publicly-traded enterprise in the U.S. devoted exclusively to the water and wastewater business.
Its 6,500 associates provide water, wastewater and other water resource management services to more than 15 million people in 27 states and three Canadian provinces. More information can be found on the Web at www.amwater.com or www.Indiana-American.com.
Source: Indiana-American Water Company
