ALLETE Agrees to Sell North Carolina Water Utility

Nov. 21, 2003

ALLETE, Inc. announced that its subsidiary, ALLETE Water Services, has agreed to sell its water and wastewater systems of North Carolina-based Heater Utilities, Inc. to Philadelphia Suburban Corp. The stock purchase agreement includes a $48 million cash payment to ALLETE Water Services and the assumption by PSC of approximately $28 million in debt. Closing is expected by mid-2004 pending approval of the North Carolina Utilities Commission.

ALLETE has been in the process of selling its Water Services business which is comprised primarily of Florida Water Services and Heater Utilities. Presently, approximately 90 percent of Florida Water assets have been sold, or are under contract to be sold, for $442 million. Including the proposed sale of Heater Utilities, the after-tax gain, net of all selling and transaction costs is expected to be approximately $90 million. The expected net cash proceeds after transaction costs, retirement of most debt, and payment of income taxes are approximately $300 million. Net proceeds from these sales have been and will be used to retire debt and securities at ALLETE.

Source: ALLETE

Sponsored Recommendations

Blower Package Integration

March 20, 2024
See how an integrated blower package can save you time, money, and energy, in a wastewater treatment system. With package integration, you have a completely integrated blower ...

Strut Comparison Chart

March 12, 2024
Conduit support systems are an integral part of construction infrastructure. Compare steel, aluminum and fiberglass strut support systems.

Energy Efficient System Design for WWTPs

Feb. 7, 2024
System splitting with adaptive control reduces electrical, maintenance, and initial investment costs.

Blower Isentropic Efficiency Explained

Feb. 7, 2024
Learn more about isentropic efficiency and specific performance as they relate to blowers.