Milford Water Company Acquisition Archive
On February 26, 2021, the Department of Public Utilities (“DPU” or “Department”) issued its report to the Supreme Judicial Court (“SJC”) as to the amount of compensation to be paid to the current owners of Milford Water Company (“MWC” or “Company”) upon acquisition by the Town. Based on the record evidence and a valuation date as of December 31, 2018, the DPU determined the purchase price for the Company’s assets to be $66,395,908. This figure does not include post-2018 capital improvements that the Company estimates to be $10,000,000. The Town argued that the company’s value was $40,485,326. The Water Company argued that the value was $148,000,000.
Prior to entering this adjudicatory proceeding, the Town had determined there was real value in immediately owning and controlling our water supply while avoiding the costs of a drawn-out process. That determination was based on the Town’s ability to reach an agreement with the Water Company for a stock purchase acquisition. The Town and the Water Company agreed upon a purchase price of $63,000,000.00. However, when a final agreement could not be reached as to specific terms for the purchase, the Select Board pursued exercise of the Town’s right to acquire the system under the statutory process with the same goal of acquiring the MWC assets. Pursuant to 2014 clarification of the law the Town retains the right to decline purchase of the Water Company assets if not satisfied with the DPU’s determination. Conversely, the MWC is bound by the DPU’s valuation determination once finally accepted and ordered by the Supreme Judicial Court.
On June 8, 2021, the Town of Milford and the Milford Water Company signed a Letter of Intent. The next step in this process is for Town Meeting to vote on August 2, 2021, on the proposed price not to exceed to $79,000,000. In the meantime, the Town is conducting the Financial and Business Due Diligence of the Milford Water Company.
Throughout the entire process to acquire the MWC assets the Select Board has prioritized protecting both the water supply and the Town’s finances. We remain steadfast in our belief that the purchase and ultimate control of the Town's water supply is in Milford's best interest. Our goal remains the same; to ensure the Town owns and operates a community water system that is transparent, responsive, and accountable to all residents.
The Select Board commends the significant efforts of the many Town Officials involved in the long and complex process. In particular the Board wants to recognize and commend the significant efforts of the legal team at Womble Bond Dickinson, and in particular lead counsel Atty. Jed Nosal.
We will continue to update the residents as we review the DPU decision and determine the next steps needed to acquire this valuable asset for the Town.
The full 196 page DPU decision is posted on the Town’s website here: Supreme Judicial Court & Department of Public Utilities Water Company Decision 02-26-2021