Mon May 7, 2012
Utility Task Force Hasn't Ruled Out Potential Merger Between MSD, Louisville Water
The utility task force studying a potential collaboration between the Metropolitan Sewer District, Louisville Water Company and Metro Public Works is nearing the end of its work.
Louisville Mayor Greg Fischer appointed the task force in January, after a scathing state audit showed numerous inefficiencies within the Metropolitan Sewer District. With the help of a consultant, the seven members of the group have been looking into different aspects of the operations at MSD, Louisville Water and Metro Public Works.
Chairman and former Louisville Water Company President John Huber says the task force has found several areas—like finance, information technology and purchasing—where there are opportunities for limited collaboration.
“We’ve looked at a number of the business processes, and of course, as you might expect, there are several of them that are very similar and several of them that use similar technologies,” he said. “So as we’re going through those, it does appear that there would be opportunities for the entities to work together in certain areas.”
But Huber says the task force still hasn’t ruled out a potential merger.
“And then the other part of that is, that’s still on the table is, should there be consideration for ultimately a merger or acquisition among these entities,” he said. “The merger/acquisition wouldn’t occur with Public Works, but it’s possible it might occur with the Louisville Water Company and MSD.”
That would require a change in state statute, as well as approval from both MSD and Louisville Water’s boards. The task force will meet tomorrow and is scheduled to present its recommendations to Fischer on May 15.