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10'78 Councilman Langley prepared a news release that is about the report given this evening. A motion was made by Councilwoman Virginia Perry to approve the news release. Councilman Cook gave the second. Motion carried 4-0. (Included in the minutes.) FOR IMMEDIATE RELEASE Contact: George Watkins President, Mooresville Town Council (317) 831-1608 MOORESVILLE TOWN COUNCIL FINANCIAL CONSULTANT STATES WATER AC!2UISITION WILL SAVE CUSTOMERS MONEY (Mooresville, Indiana) February 19, 2013-The Mooresville Town Council listened to a presentation from representatives of financial consultant, H.J. Umbaugh & Associates at its Council Meeting this evening. The presentation focused on the financial aspects associated with the planned utility acquisition of Indiana-American Water Company's Mooresville Operation. Umbaugh explained how the costs associated with this purchase could be absorbed into a future municipal bond issuance to be paid back with future revenue generated by the water operation under its current rate structure. Due to the excess profits now being taken out of the Mooresville community by Indiana- American and additional tax savings available to municipal operators, Umbaugh concluded that the Town will have sufficient funding to make the utility acquisition without the fear of raising water rates anywhere near the single-tariff pricing rate that Indiana-American Water Company is seeking for Mooresville water customers. An Indiana-American Water Company witness had earlier provided testimony to the Indiana Utility Regulatory Commission stating "The goal in a future rate case would be to combine these two rate groups into one and thereby implement full STP (single tariff pricing)." Mooresville customers currently pay a separate water rate (Area 2), however, the Company has begun taking steps to consolidate this water rate into a much higher water rate group (Area 1). . The Mooresville Town Council has stated its opposition to this anticipated action by Indiana-American which would cause future significant rate increases similar to the one implemented in June of 2012. The average homeowners saw a 17% increase while some businesses and local industrial customers were left to deal with increases up to 40%, in the 2012 rate increase. While the Town Council has stated its concerns of Mooresville residents subsidizing the funding needs of other Indiana communities, through this consolidated rate plan, Indiana-American Water has yet to deny, or give indication that it is moving away from its plan to continue implementing single-tariff pricing, and thus much higher water rates in Mooresville. Mooresville Town Councilor, Anthony Langley stated, "We don't have any problems with the local staff and how they manage the local operation, however, the corporate offices of Indiana-American that file these rate increases for Mooresville customers are seeking to continue the implementation of a rate strategy that simply is not in the best interests of Mooresville water customers. The Mooresville Town Council has the legal right to protect its citizens from these unnecessary rate increases, and have begun taking steps to do so."