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NiSource, Inc., and its subsidiary, IWC Resources Corporation (IWCR), have reached a definitive agreement with The City of Indianapolis for the City to buy the assets of the Indianapolis Water Company and other subsidiaries of IWCR for $515 million.
NiSource Chairman, President and Chief Executive Officer Gary L. Neale said, "Once completed, this transaction will enable NiSource to better focus on our core natural gas and electric businesses and reduce debt following our merger last year with Columbia Energy Group."
Neale said NiSource expects to close on the transaction in the first part of 2002.
NiSource was required to sell its water assets as part of the order by the U.S. Securities and Exchange Commission approving the NiSource-Columbia merger, which was completed Nov. 1, 2000. The Public Utility Holding Company Act of 1935 requires utility holding companies to divest operations not integral to their primary operations.
NiSource and The City entered into a letter of intent for the transaction in July 2001. Closing of the sale is subject to various conditions, including:
* receipt of all necessary consents, including approval by the Indiana Utility Regulatory Commission; and
* the ability of the City to finance the transaction using investment- grade municipal bonds on terms that are reasonably satisfactory to the City.