Montana Consumer Counsel: Carlyle isn’t passing on debt savings
“Since the Carlyle Group purchased Mountain Water Co., the utility has issued debt at a much lower interest rate, according to the Montana Consumer Counsel.
Customers, though, aren’t getting the benefit the global investment firm promised them, reads a court document from the Consumer Counsel.
In March 2013, Mountain Water Co. issued $15 million in debt at 4.5 percent interest, “a rate much lower than it had historically been able to attain,” reads the opening brief of the Montana Consumer Counsel in its case against the Montana Public Service Commission. Prior to the change in ownership, Mountain had issued debt at 10 percent, the court document said.
“This decreased cost of debt, reflecting Carlyle’s presence and Mountain’s changed financial circumstances, was not passed on to Missoula ratepayers,” reads the brief.
The Carlyle Group bought Mountain Water in 2011 with approval from the Public Service Commission. Since Carlyle took ownership, it has provided tangible benefits to customers, said spokesman Christopher Ullman.”
Szpaller, Keila. Missoulian 7 July 2014.