CONTRACT EXTENSION SOLIDIFIES PARTNERSHIP AND POSITIONS THE REGION FOR COMING GROWTH CONTRACT EXTENSION SOLIDIFIES PARTNERSHIP AND POSITIONS THE REGION FOR COMING GROWTH
November 2, 2016
The Charleston Water System (CWS) and Mount Pleasant Waterworks (MPW) signed a thirty-year extension on their intergovernmental wholesale water purchase agreement on Tuesday, November 1st. The agreement extends the existing contract, wherein MPW buys water at a purchased capacity rate from CWS. Currently, MPW purchases approximately six million gallons per day from CWS. The new agreement also allows for increased water purchases to meet future demand and growth. In addition, it allows for the possibility of future construction of a third point of delivery from CWS to MPW.
“We are glad to finalize this important agreement with Mount Pleasant Waterworks. We are committed to providing high quality clean water services to our growing region,” said Kin Hill, CWS CEO. “The Cooper River may seem like a dividing line, but we have a responsibility to plan with our neighbors as development and population increases continue within our service areas,” Hill said.
“The signing of this contract is a monumental step that allows us to provide our current and future customers with clean safe water at affordable rates,” said Clay Duffie, MPW General Manager. “As providers of a life sustaining resource, it is our responsibility to work together to sustain and protect this most important natural resource. We are extremely pleased to have successfully developed and executed this contract with CWS and appreciate the hard work and dedication from employees and Commissioners on both sides of the river” Duffie said.
MPW and CWS began their wholesale water partnership in 1995. The new extension carries the contract through 2046 and includes an additional 10-year extension if both parties agree at the end of the contract term.
Some highlights of the contract include:
• The possibility of a third point of delivery and a cost sharing agreement if an additional waterline is built to establish the new connection. A new point of delivery would also enhance emergency water delivery to both utilities;
• Establishing availability for up to 15 million gallons per day between the two existing delivery points;
• Flexible operational management to meet demand requirements.
CWS serves approximately 115,000 retail water accounts and MPW serves approximately 40,000 retail water accounts. Collectively, the two systems serve approximately 400,000 people with drinking water in the region.