The Missouri Public Service Commission has approved a request filed by Osage Utility Operating Company (Osage Utility) which sought Commission authority to purchase the water and sewer system assets of the Osage Water Company (Osage Water).

The Missouri Public Service Commission has approved a request filed by Osage Utility Operating Company (Osage Utility) which sought Commission authority to purchase the water and sewer system assets of the Osage Water Company (Osage Water).
The purchase includes the systems serving the Cedar Glen Condominium development west of Camdenton.

The Commission determined that Osage Utility has the technical, managerial and financial capability to own and operate the Osage Water water and sewer systems. “After weighing the benefits and detriments, the Commission finds the evidence shows the granting of Osage Utility’s application will not be detrimental to the public,” said the Commission.

“The Osage Water Company facilities are currently in need of maintenance and repair. In its revised memorandum, Staff identified maintenance, repair and/or permitting concerns at each of Osage Water Company’s water and sewer facilities,” said the Commission. “These needs, as identified by Staff, include: facilities operating without permits from the MDNR (Missouri Department of Natural Resources); one wastewater treatment system with partially treated or untreated wastewater bypassing the treatment processes; and other immediate repairs and longer-term capital improvements.”

As part of its application, Osage Utility sought an acquisition incentive which is designed to incentivize the acquisition of a nonviable utility. In its decision, the Commission denied that request.

Osage Utility plans to adopt the current rates for customers until it files its first general rate case. Any improvements made by Osage Utility will be evaluated by the PSC Staff for prudence and reviewed by the Commission in a general rate case before being included in rates. The Commission noted in its decision that purchase of the Osage Water water and sewer systems will likely result in a future rate increase to recover prudent improvement and repair costs. Current Osage Water water and sewer rates have been in effect since September 2009.

The Osage Water Company serves approximately 402 water customers and 420 sewer customers in Camden County.

Osage Water Company was placed in receivership more than a decade ago by the PSC. The company filed for Chapter 11 bankruptcy in October of 2017. As part of the bankruptcy. the assets of the company were put up for sale. Public Water Supply District #5 had also made a bid to purchase.
Osage Utilities is an affiliate of Central States Water Resources based in St. Louis.