Eagle wanted to buy its water company. Suez will buy it instead. Big rate hikes coming
After years of being embroiled in a battle with the city of Eagle over Eagle Water Co., Suez just reaffirmed its plans to buy the company.
The city, Eagle Water and Suez resolved a lawsuit earlier this year, allowing the company to move forward with purchasing Eagle Water. In a news release Wednesday, Suez said it will purchase the company for $10.5 million.
Suez, the valley’s largest water company, re-filed an application with the Idaho Public Utilities Commission to acquire the Eagle Water system that serves about 12,000 people in Eagle and portions of Ada County. The acquisition would fold Eagle Water into Suez’s existing Idaho operations, which serve 240,000 people in the valley.
“Suez is the water provider for about a third of Eagle now, and we look forward to the possibility of serving more of our neighbors in the near future,” said Marshall Thompson, Suez vice president and general manager, in the release. “Acquiring the system would bring strong benefits to Eagle Water customers, and we remain dedicated to serving this vibrant community.”
Customers will see sharply higher bills.
Based on a current average monthly bill of $12.35, using 12,000 gallons per month, residential customers would see the following approximate monthly increases:
- 2021: $7.13 or 58%.
- 2022: $6.07 or 31%.
- 2023: $5.11 or 20%.
- 2024: $5.11 or 17%.
- 2025: $5.11 or 14%.
Commercial customers who now pay an average monthly bill of $38.96, using 56,000 gallons per month, would see these increases:
- 2021: $40.23 or 103%.
- 2022: $24.68 or 31%.
- 2023: $20.77 or 20%.
- 2024:$20.77 or 17%.
- 2025: $20.77 or 14%.
The increases, in part, prompted former Eagle Mayor Stan Ridgeway to have the city try to buy Eagle Water.
Major upgrades needed
The city sued Eagle Water in 2019 after the company announced that Suez would buy it. The city claimed it had a “right of first refusal” that would allow it to purchase Eagle Water before another entity could, the Idaho Statesman reported.
City officials also wanted to prevent Suez from diverting Eagle’s water resources to other areas of the valley, something they worried would happen because of the company’s valley-wide service.
After the case went to mediation, the city dropped its lawsuit upon learning that Eagle Water’s system needed an estimated $8.5 million in upgrades and that Eagle’s future growth needs could be met without additional water from the company.
After the city, Eagle Water and Suez resolved the lawsuit, Ridgeway’s successor, Mayor Jason Pierce, said that while he initially wanted the city to own Eagle Water, “we realized that this solution is the best for all of the residents of Eagle.”
The intent to purchase must be approved by the Idaho Public Utilities Commission.
Suez said that customers could expect 24-hour automated monitoring of the water system, an online customer web and billing site, local personnel and a sustainable water system.
This story was originally published June 9, 2021 at 2:52 PM.
