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Acquisition Of Aloha Utilities Is Complete

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By KEVIN WIATROWSKI

kwiatrowski@tampatrib.com

Published: February 28, 2009

As of Friday, Aloha Utilities is the property of the Florida Governmental Utility Authority.

Officials with the state-chartered utility formally closed on the $90.5 million purchase of the troubled water company. Aloha serves 17,000 customers in southwest Pasco.

The closing came two months later than originally planned because the buyers had trouble securing financing.

The FGUA struck a deal this month with Wachovia Corp. for a three-year, $105 million loan. The deal eventually will be refinanced as a more traditional government bond issue.

The loan amount includes $12 million to upgrade Aloha's systems in a way that will eventually purge the system of the smelly, black water that has aggravated Aloha customers for years.

Customers lobbied for the FGUA takeover and agreed to pay higher rates to make it happen.

Aloha is the eighth private utility acquired by the FGUA, which was created to put private utilities under public ownership. The authority's board approved the Aloha deal Feb. 19.

Reporter Kevin Wiatrowski can be reached at (813) 948-4201.

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