Carlyle: Mountain Water Co. spends $2M on ‘support services’
“The Carlyle Group admits Mountain Water Co. spends an estimated $2 million a year on “administrative and support services provided by” its parent company in California, according to documents filed this week in Missoula County District Court.
In a pending condemnation case, Mayor John Engen has argued those millions should stay in Missoula.
Earlier this year, the city of Missoula filed an eminent domain proceeding against Mountain Water Co. and owner Carlyle Infrastructure Partners, and this week, the defendants filed answers in the case scheduled to go to trial in March 2015.
In the case, the city is attempting to force a sale of Mountain Water, alleging in part that Carlyle promised to sell the water utility to Missoula, then reneged on its pledge in a classic “bait and switch.” In its complaint, the city also argues it would be a more judicious owner of the infrastructure since it doesn’t need to pay investors – or compensate founding partners.
As part of its argument, the city noted Mountain Water sent an estimated
$2 million to California for overhead; Mountain Water is owned by Park Water in California. Park, Mountain and another California water company make up Western Water Holdings – and Western Water is owned by Carlyle.
In its response, Carlyle confirmed that Mountain Water pays $2 million annually to Park Water for “support services.””
Szpaller, Keila. Missoulian 24 July 2014.