CUMBERLAND — A 30-day remonstrance and approval by the Indiana Utility Regulatory Commission is all that stands between NineStar Connect purchasing GEM water utility from the town of Cumberland.
Last Wednesday, the Cumberland Town Council approved an ordinance selling GEM water to NineStar for $4 million. The ordinance also gave New Palestine control of some of Cumberland’s sewer customers. The New Palestine acquisition sits between county roads 200 South and 300 South, from Jacobi Road west to Mt. Comfort Road.
Cumberland, which purchased GEM water in 2010, determined it was too expensive for the town to continue to operate the water utility. Even prior to a rate hike in 2012, GEM customers had the highest rates in Hancock County. Enter NineStar, which is trying to grow its water presence. The acquisition will add about 500 customers into NineStar’s water service.
Cumberland town manager April Fisher said the town received a few offers but chose to go with NineStar because of the co-op structure of the company and NineStar’s pledge to add fiber to the town as part of the purchase agreement. NineStar is formed as a not-for profit utility company and every customer becomes part of their co-op and able to vote on the company’s board of directors.
“NineStar has been a great partner in Hancock County and has a history of working with the town,” Fisher said. “We believe our residents and GEM water customers will benefit from NineStar being a locally-owned, locally-controlled nonprofit utility.”
NineStar has said there will be no water rate hikes at least for the first couple of years as the company sees how the system operates. Any proposed rate hike would have to be approved by the IURC.
NineStar President David Burrow said as a not-for profit, any extra money the company makes is returned to its customers as a credit. Over the past 10 years, NineStar has returned $4 million back to its customers, Burrow said.
NineStar also provides internet as part of its services and over the next 18 to 24 months will be providing fiber connections to all of its new water customers. NineStar will also add fiber to downtown Cumberland, as well as the town’s parks and trials. The addition of fiber allows for public Wi-Fi and greater public safety, Burrow said.
NineStar is part of Cumberland’s group Stellar Communities application with New Palestine and McCordsville in an effort to improve the Mt. Comfort corridor. Burrow said the company is invested in improving the quality of life in the county and this agreement allows them to continue to do so.