Carolina Water Service Transfers Ownership of I-20 Plant to Town of Lexington

Lexington, SC (Feb. 1, 2018) – Carolina Water Service, Inc., (CWS) officially transferred ownership of its I-20 wastewater treatment plant today at 8:30 a.m. to the Town of Lexington.  As previously agreed, CWS officials handed over the keys to Town officials this morning. From this point forward, CWS sewer customers served by the treatment facility are now customers of the Town of Lexington.

While the Town is now the owner of and responsible for the I-20 system, the ultimate price CWS will be paid for the system remains to be decided.  As part of the condemnation process, a Lexington County court and jury will decide a fair value based on appraisals—which we expect will be significantly different—from both CWS and the Town.

“As we have demonstrated for many years, it has long been CWS’ goal to eliminate the fully-treated discharge from this plant into the Saluda River,” said Bob Gilroy, Vice President of Operations for CWS.  “Today is the realization of that goal and we have worked diligently with the Town to make sure this has been a smooth transition.”

The Town of Lexington can be reached at 1-803-358-1581 or by email at I20Cusvc@lexsc.com.  CWS customers who have questions or concerns may call our customer service line at 1-800-367-4314.

Carolina Water Service, Inc., is headquartered in West Columbia, SC, and provides drinking water and waste water services to approximately 28,000 customers throughout the state.

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Carolina Water Service Completes Response to Town’s Latest Information Requests for I-20 Plant

CWS looks forward to immediate and smooth transfer of ownership

Lexington, SC (Jan. 16, 2018) – Carolina Water Service, Inc., (CWS) has reached the final milestone, again, in transferring ownership of its I-20 wastewater treatment plant to the Town of Lexington. On Dec. 15, 2017, CWS provided the information needed for the Town of Lexington to take over the I-20 plant. On Jan. 5, 2018, the Town requested additional information from CWS. On Friday, CWS gave the last of the latest information requested from the Town necessary to turn over ownership, again. These data transfers included a wide range of information such as customer data, maintenance records, and GIS mapping.

Although not required for the Town to take ownership, another piece of information the Town has requested from CWS is the Company’s appraisal of the system. This appraisal will be used by the court and a Lexington County jury to determine the fair market value of the I-20 system after the Town takes it over. CWS is agreeing to complete and provide their appraisal early to the Town which will be done in the weeks ahead. “We will provide the most current and accurate appraisal possible to the town which will assure that the residents of Lexington understand the cost and potential use of their tax dollars,” said Matthew Klein, interim president for CWS. “And it will do so while ensuring that CWS is compensated appropriately for the system.”

“We remain ready to hold up our end of the bargain in turning the plant over to the Town and ultimately removing this treated discharge from the Saluda River,” Klein added. “The Town has, and has had since mid-December, everything they need to take ownership of the system immediately.”

CWS has sought to eliminate the fully treated discharge from the I-20 facility into the Lower Saluda River for more than 20 years. On multiple occasions since 1996, CWS has sought a connection of the I-20 system to the Town’s regional facility. These efforts have been unsuccessful. A regional facility line lies within 150 feet of the I-20 system, and CWS and has worked diligently to get the Town to allow a connection for that purpose. In the fall of 2017, the Town finally agreed to condemn the system, a move long supported by CWS, to take ownership of it.

“While it sounds ominous, the condemnation process actually allows the Town to take over the system while the court system decides on fair market value for it,” said Klein. “We want to make sure this process is done as smoothly and quickly as possible and are pleased that the Town has agreed to this exchange.”

Carolina Water Service, Inc., is headquartered in West Columbia, SC, and provides drinking water and waste water services to approximately 28,000 customers throughout the state.

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Carolina Water Service Names Heigel as New President

COLUMBIA, SC (Jan. 9, 2018) — Catherine Heigel, Chief Operating Officer of Elliott Davis, LLC and former Director of the South Carolina Department of Health and Environmental Control (DHEC), has been named president of Carolina Water Service, effective February 1.

Heigel previously worked as a regulatory lawyer and executive for more than a decade with Duke Energy Corporation, serving as president of Duke Energy South Carolina in her last role with the company. “I look forward to joining CWS and working to deliver on the company’s commitment to providing safe and reliable drinking water and wastewater services in South Carolina,” said Heigel.

Heigel took over the helm of DHEC in June 2015 and earned accolades for her leadership of the agency. During her tenure, Heigel initiated the launch of the South Carolina Adopt-a-Stream program with Clemson University to empower citizen volunteers to help monitor water quality in the state’s lakes, rivers and streams. Heigel also successfully managed major public health and environmental emergencies for the agency, including the October 2015 Flood and Hurricane Matthew in 2016.

“We are excited to bring Catherine on board to lead Carolina Water Service. Her extensive utility and regulatory background, as well as her transformational leadership experience, will benefit our customers and the communities we serve and be instrumental to CWS’s strategic growth in the future,” said Lisa Sparrow, CEO of parent company, Utilities Inc.

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Carolina Water Service seeks support for infrastructure investments through rate adjustment

W. Columbia, SC (Nov. 10, 2017) – Carolina Water Service, Inc., (CWS) has invested more than $11 million in improvements to its system in the last two-and-a-half years – money that has already been spent to upgrade tanks, lift stations and interconnections. Due to these expenses as well as the rising cost of purchased water, CWS announced today that it is filing for a rate adjustment with the Public Service Commission and the Office of Regulatory Staff.

“Carolina Water Service continually invests in its system to provide a safe and reliable supply of drinking water and deliver top quality water treatment services at the lowest possible price to its customers,” said Bob Gilroy, Vice President of Operations for CWS. “We understand that nobody like rates increases. However, unlike situations we have seen recently with other utilities, CWS is seeking to recover money spent on infrastructure already in place and benefiting the system.”

On average, CWS water customers use approximately 4,321 gallons per month. The proposed average increase to those customers will be roughly $11 per month. This will vary depending on territory and whether customers are provided purchased water versus well water. Increases in the price the company pays to buy water to supply to customers is directly passed on to them.

As for sewer rates, customers are charged a flat fee for usage. The reason is that the cost for treating sewage is not as dependent on the amount of water used. Rather, the bulk of the costs for treating sewage goes into the equipment and maintenance of the facilities that treat it. On average, customers will see an increase of $14 per month.

“We all want safe, dependable water and quality wastewater service at the lowest possible price,” said Gilroy. “The revenue produced from a rate adjustment will pay for upgrades and expenses already made, and will allow CWS to move forward with additional long-term capital investment plans to upgrade and maintain facilities. Under the proposed new rates, safe and reliable drinking water delivered to your faucet will still cost approximately one penny per gallon.”

Carolina Water Service, Inc., is headquartered in West Columbia, SC, and provides drinking water and waste water services to approximately 28,000 customers throughout the state.

Media Contact: Robert Yanity
803-753-1193

CWS Seeks to Protect Customers in Condemnation Proceedings

As has been reported in October, Carolina Water Service has offered to cooperate with the Town of Lexington to facilitate a smooth transfer of ownership of the I-20 waste water system. Today, CWS has advised the Town that the requested information (including customer data) necessary for a smooth transition, has been compiled and is available to the Town satisfying its requested deadline.

Since our customer data contains confidential information and must be protected from public disclosure, CWS has agreed to provide the documents as soon as the Town agrees to the entry of an order by the Court that would protect customers’ personal information from public disclosure as well as certain other system information. The privacy of our customers is of the utmost importance and we hope that the Town will move quickly to resolve these minor issues so that we can move forward with the transition.

 

Latest News on Condemnation Proceedings

Yesterday, CWS responded to the Town of Lexington’s most recent correspondence regarding condemnation proceedings. In essence, the Town requested information necessary to turn our I-20 system over to them – customer data, maintenance records, GIS mapping, etc. – that is routine in proceedings such as this.  They have requested the information by Nov. 1 and we see no issue with meeting this request.

Per the Town’s request, its intent is to take over the I-20 system on or about Dec. 1. CWS intends to cooperate with the Town and assist in facilitating a smooth transfer of ownership to meet this time frame so that customers do not experience any interruption in service.

It is important to note that certain details and issues in the Town’s request need to be resolved, and we have requested this of them:

• The Town at one point identifies the SCDOT as the condemnor. That needs to be changed to avoid confusion.

• The Town incorrectly identifies several outstanding tax liens which it claims exist against CWS’s property. There are no such liens, which CWS has twice informed the Town, and the reference to them should be withdrawn by the Town.

• The Town mentions that the required payment ($1,584,000) has been posted with the Lexington County Clerk of Court. We have not seen documentation confirming this as of last night, Oct. 12, and request they provide that proof to us immediately.
• The Town has requested the above-mentioned information from us without a formal discovery request. Because this is a legal proceeding, we request that they follow normal procedure and provide a discovery request. This can be done simply and quickly by the Town.

We feel that the issues above can be resolved quickly by the Town and should have no impact on meeting their requested deadlines. As we have stated throughout this process, we are committed to a smooth and quick transition and hope the Town is as well.

Full Statement on Condemnation Letter

Today, Carolina Water Services, Inc., rejected the $1,584,000 offer in condemnation from the Town of Lexington for the Company’s I-20 facility so that condemnation proceedings can begin immediately — a process long supported and promoted by the company. To ensure that the process moves quickly, CWS does not intend to challenge the Town’s authority to condemn the I-20 system. This means that the Town can now, and should now, take immediate possession of the plant, also supported by CWS. The ball is now in the Town’s court on how swiftly this moves forward – we encourage them to not delay.

While the Mayor of Lexington continues to make false accusations about CWS, it is important to note that the Town of Lexington, through numerous administrations, has always had the power – as well as the duty in view of its status as a designated management agency under the federal Clean Water Act §208 Water Quality Management Plan – to resolve this issue, but has refused to act. It has long been the publicly stated goal of CWS for the I-20 wastewater collection facilities to connect with the Town’s wastewater system. The fact is that the Town of Lexington has consistently misstated our position and has been unwilling to work with CWS to eliminate this wastewater treatment plant:

• On multiple occasions since 1996, CWS has sought a connection of the I-20 System to the Town’s regional facility. These efforts were unsuccessful. CWS has repeatedly requested and urged the Town to make an offer in good faith for the I-20 system so that negotiations could begin. The first offer came in May 2017 for $1.3 million, which was unacceptable and declined.
• The Town previously participated on CWS’s side in 2004 litigation opposing the efforts of the Lexington County Joint Municipal Water and Sewer System to condemn the I-20 System. The appraisal at issue in that case came back for more than double the Town’s offer in condemnation. That 2004 condemnation was abandoned because of the value of the I-20 System.
• There is a regional facility line within 150 feet of the I-20 System that CWS is more than willing to tie into, and has in fact encouraged the Town to allow a connection for that purpose. To date, the Town has consistently refused to move forward with a connection.
• Under the current circumstances, South Carolina law permits the Town to take immediate possession of the I-20 System after depositing the amount of its offer in condemnation with the Clerk of Court. Whether the Town does so will speak volumes about the sincerity of its intent to condemn the I-20 System and eliminate the treated wastewater discharge into the Lower Saluda River.
• The Town Administrator has been quoted in recent news articles as saying that it will take time to connect the I-20 System to the Town’s regional facility due to the allegedly poor condition of lines in the I-20 System. That statement is false and is simply an excuse to avoid prompt connection. The statement contradicts the Town’s own engineering study and report, which state that the lines are in good condition for their age and have been properly maintained. DHEC has previously issued to CWS a permit for a connection pursuant to approved plans which could be adopted by the Town. Any delay in connection will be because that is what the Town wants – not because of the condition of the System.

CWS has wanted to eliminate the discharge of treated wastewater from the I-20 System into the Lower Saluda River for more than 20 years. All the company has asked for is either an interconnection agreement which could be approved by the Public Service Commission as consistent with the interests of our customers or the fair market value for its property. The Town has continually been uncooperative in making this happen. We are encouraged by the Town’s issuance of a condemnation notice – even though it has not offered fair market value for our property – and hope that the Town will move through this process quickly to end discharges into the river, an outcome desired by all.

Our response today to the Town’s offer in condemnation opens the way for the Town to immediately remove the I-20 System discharge of treated wastewater from the Lower Saluda River. As has always been the case, whether this occurs is entirely in the hands of the Town of Lexington.

CWS rejects Town of Lexington’s offer, allowing condemnation process to move forward

Today, Carolina Water Service, Inc., rejected the $1,584,000 offer in condemnation from the Town of Lexington for the Company’s I-20 facility so that condemnation proceedings can begin immediately — a process long supported and promoted by the company. To ensure that the process moves quickly, CWS does not intend to challenge the Town’s authority to condemn the I-20 system.

• The Town can now, and should now, take immediate possession of the plant, also supported by CWS. The ball is now in the Town’s court on how swiftly this moves forward – we encourage them to not delay.
• This opens the way for the Town to immediately remove the I-20 System discharge of treated wastewater from the Lower Saluda River. As has always been the case, it is entirely in the hands of the Town of Lexington.
• Accusations by the Mayor and Town Administrator regarding the condition of the I-20 System are blatantly false. Their own appraisal states: “Based upon the findings of the field review, NewGen is of the opinion that the System has been maintained and kept in adequate working order and condition.”

We look forward to moving through this process quickly and encourage the Town to make every effort to not delay these proceedings as they have done in the past.

CWS Statement on Recent Offer for I-20 Plant

Media reports have indicated that the Town of Lexington has made an offer to Carolina Water Service to purchase it I-20 facility. As of 4:55 pm on Thursday, Sept. 21, that offer has not been received by CWS.

As background, the Town of Lexington made an offer to CWS in May 2017 for the I-20 plant for $1.3 million. This offer was unacceptable and was declined. The $1.3 million was the first and only offer we have received from the Town since 1996.  It is noteworthy that when CWS received an offer in condemnation from the Lexington County Joint Municipal Water and Sewer System in 2004 for the I-20 system for nearly four times this amount, the Town joined CWS in opposing that condemnation.

CWS has long been supportive of selling the I-20 system to the Town of Lexington for a reasonable price and ending discharges into the Saluda River. CWS is confident that a professional appraiser with recognized expertise in this area would estimate a value for the I-20 system far more than the amount offered by the Town.

In lieu of an acceptable offer, CWS is extremely supportive of the Town using its authority of eminent domain to begin condemnation proceedings, a process that will allow the Town to acquire immediate ownership of the property while ensuring that CWS is given an opportunity to seek just compensation. This solution is not only acceptable to us, but also supported by river stakeholders as mentioned in The State on Aug. 28, 2015.

We have not received any recent offer from the Town. The Town should be comfortable proceeding with the condemnation immediately if they are in fact willing to pay fair market value as required by law.

Finally, CWS remains open to ending the discharge by way of a wholesale connection with the Town, which is what is required under the 208 Plan. It is unfortunate that the Town will not offer interconnection as that will end the discharge and avoid the cost and delay associated with interconnection.

Final Hurricane Irma Update: 11:00 AM

Final Service Update: Service has been restored to all CWS customers. All boil water advisories have been lifted. We appreciate everyone’s patience throughout this event. If you have any concerns, CWS customer service representatives are available at (800) 367-4314 and customerservice@uiwater.com.