The sale of Eagle Water Company to Suez Water will move ahead after the resolution of a city of Eagle lawsuit filed in 2019.
City officials announced in a news release Wednesday that the lawsuit was resolved through mediation and that the sale to Suez will proceed to a review conducted by the Idaho Public Utilities Commission. The PUC must approve the sale for it to become final.
“The agreement protects residents’ long-term interests,” Eagle Mayor Jason Pierce said in the release. “Going into the mediation of the lawsuit, I really wanted the city of Eagle to own Eagle Water Company. But after doing our due diligence, we realized that this solution is the best for all of the residents of Eagle.”
In February 2019, the city filed the suit in state court to block the sale to Suez, in the hopes of purchasing Eagle Water itself. Eagle said it had a “right of first refusal” to the private utility, a legal agreement that would allow it to purchase Eagle Water before another entity could.
At the time of the lawsuit, city officials said they made the move to prevent Suez — the Treasure Valley’s largest water company — from diverting Eagle’s water resources to other areas of the valley if the sale went through. The sale to Suez also would have led to higher bills for Eagle Water customers, they said. On Wednesday, Eagle officials said a water management agreement between the city and Suez that addresses these concerns was a large part of the resolution. The agreement includes a rate increase phase-in over 3-5 years, pending PUC approval, for current Eagle Water customers. Rates for municipal city of Eagle customers will remain the same. The agreement also outlines service area boundaries between Suez and city customers.
In addition to announcing the news Wednesday, Eagle officials outlined key factors that led to the lawsuit’s resolution. Officials said they learned that not purchasing Eagle Water Company would save a large amount of money, as the system needs “significant maintenance work,” according to the city.
Suez calculated that $8 million in upgrades are needed to Eagle Water systems, including $500,000 in immediate costs.
With the city no longer trying to purchase Eagle Water, it also avoids the need for a bond vote to get the funding. Additionally, city officials learned that there is no excess water, or water rights, available from purchasing Eagle Water.
“This is a win for everyone involved, but especially Eagle Water Company customers who will be able to enjoy a sustainable, modernized water system that will continue to deliver high-quality water for many years to come,” Suez general manager Marshall Thompson said in the news release.
The Statesman previously reported that the city and Eagle Water had been in sales talks for years, but a deal never came to fruition.
If the sale is approved, Suez would add Eagle Water’s roughly 4,200 customers in areas of Ada County. Suez currently provides services to roughly 98,000 customers in the Treasure Valley, including 3,200 in Eagle.