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Consortium won't give up on water utility
By CARRIE JOHNSON, Times Staff Writer
As the deal between the state's largest private water company and two small Panhandle towns grows increasingly precarious, a coalition of local governments is renewing its bid to buy the utility giant. The Florida Governmental Utility Authority voted Friday to offer $416-million for Florida Water Services, which has approximately 150 systems in 26 counties, including Citrus and Hernando. The bid is significantly lower than the $492-million deal struck between Florida Water and the authority formed by the towns of Milton and Gulf Breeze. But that deal was put in jeopardy Monday, when a Leon County circuit judge delayed the sale by granting a temporary injunction requested by the Public Services Commission, the government agency that oversees utilities. The PSC asked for the injunction while it reviews the details of the sale to determine whether it is exempt from government oversight. Citrus County Administrator Richard Wesch, an FGUA board member, said the coalition believes the court's ruling may force Florida Water's parent company, Allete Inc., to reconsider its options. "We just want them to know that we're still out here and we're still interested," Wesch said. According to a letter sent on behalf of the FGUA to Allete vice president James K. Vizanko, all pending litigation would be dropped if the company decides to strike a deal with the coalition. Also, the FGUA has agreed to pay the entire purchase price in cash at closing. Lisa Lochridge, a spokeswoman for Florida Water, said the company had not reviewed the FGUA's proposal and could not comment. The FGUA is made up of representatives from many of the localities served by Florida Water Services. The group worked for more than a year to put together a deal to buy the utility. But in September, the company announced its intention to sell to Milton and Gulf Breeze, which have a combined population of 13,000 and are miles from the nearest Florida Water customer. The announcement was greeted by a huge public outcry. Outraged customers and local government officials said the deal would rob them of their right to appeal decisions made by the utility company. Several localities, including the Citrus County community of Sugarmill Woods, filed lawsuits to block the sale. The legal challenges took an immediate toll: The project's bond rating was valued at just above junk bond status, prompting the company to drop the sale price from $507-million to $492-million. Now all sides are waiting for a Feb. 28 hearing in Leon County Circuit Court, when a judge will decide whether to issue a permanent injunction barring the sale. Lea Ann Thomas, who chairs the FGUA, said the decision to submit another offer was made after reviewing Florida Water's assets for the past few months. "We're hopeful that if Allete reopens discussions, the FGUA and local government representatives will be able to convince Allete that this offer presents the best opportunity to achieve a sale in the shortest time possible on mutually satisfactory terms," she said. -- Carrie Johnson can be reached at 860-7309 or cjohnson@sptimes.com .
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