GREENFIELD, Ind., May 21, 2018 (GLOBE NEWSWIRE) -- NineStar Connect, a smart utility providing water, sewer, electric and high speed fiber services, announced today that the Town of Cumberland voted to accept its offer to acquire Gem Water Utility, which the town has owned since 2010.
As part of the acquisition, NineStar Connect will retire Cumberland’s bond debt for Gem Water Utility, and has committed its Central Indiana Communications, Inc. (CICI) for-profit communications subsidiary will build a fiber optic network that connects Cumberland’s town hall and other municipal facilities, including municipal parks and trails, enabling greater public safety and quality of place enhancements like security cameras and public WiFi.
Upon closing, each Gem Water customer will become a member of the NineStar Connect cooperative. Within 18-24 months of the sale date, NineStar said it intends to begin building high speed fiber optic facilities to each home and business within the Gem Water Utility territory.
“It is a mission of the NineStar board of directors to provide all co-op members fiber to their homes and businesses. This allows for more efficient delivery of utility services and provides members with access to the fastest broadband services available anywhere in the United States,” said Michael Burrow, President & CEO of NineStar Connect. “High speed fiber and a strong utility infrastructure are essential to a community’s ability to economically succeed and for residents to have a quality of place that maintains and enhances their property values.”
NineStar has a strong history of building and running utilities that contribute to the economic development of Hancock County and surrounding areas. As a nonprofit co-op, members elect its board of directors who make critical decisions that impact the community. Any excess money generated by utility services is allocated back to members as capital credits. Over the last 10 years, NineStar has returned more than $4 million in cash back to its members by retiring those capital credits.
Gem Utilities serves approximately 500 water customers in a territory that lies between Cumberland’s eastern boundary and NineStar’s current water service territory around Philadelphia in western Hancock County. With this acquisition, NineStar’s water customer base will go from 100 to 600 water customers, which allows the utility to operate and grow more efficiently and promote economic growth.
According to Cumberland Town Manager April Fisher, Cumberland considered purchase proposals from three other utilities. “NineStar has been a great partner in Hancock County, and has a history of working with the town of Cumberland on several economic development projects, including the Mt. Comfort Corridor initiative. We also believe our residents and Gem Water customers will benefit from NineStar being a locally-owned, locally-controlled nonprofit co-op utility,” said Fisher.
Following the vote, there will be a 30-day petition period for residents of Cumberland before the agreement is sent to the Indiana Utility Regulatory Committee for approval.
About NineStar Connect
NineStar Connect is a smart utility located in Hancock County, Ind. The only rural co-op in the United States to offer fiber optic, electricity, water and sewer services, NineStar Connect’s mission is to deliver the utility infrastructure needed to drive economic development and growth for rural communities. More information is available at www.ninestarconnect.com.
For information contact:
Linda Muskin, 847-432-7300
lmuskin@teamclarus.com
David Spencer, 317-323-2131
dspencer@ninestarconnect.com