Story Published:
Sep 21, 2009 at 10:24 PM EST
Story Updated:
Sep 21, 2009 at 10:38 PM EST
GLOVERVILLE, S.C. - The company considering taking over the Graniteville water system from Avondale Mills now has 120 days to decide if it wants to go through with the deal.
Like many other customers of Avondale Mills, Wade Baggott is waiting to see who will be providing his water.
“I understand Valley is going to take it over,” Baggott said.
Monday night Valley Public Service Authority's board voted on an agreement for Valley to take on Avondale Mills' customers after 120 days of reviewing the water system.
The agreement comes after Avondale raised water rates in July for customers in Graniteville and Vaucluse. In some cases, the bills skyrocketed 700-percent.
“My water bill tripled, more than tripled, it went form 10 to 90 dollars for 7,000 gallons,” Baggott said.
The change in water providers will not mean an immediate drop in rates for Avondale's customers.
“I don't understand why they're not going to reduce the rates,” Baggott said.
Valley's general manager, Calvin Smith, says it's because they will have to purchase water from an outside source and make major repairs to the current system.
Those repairs are why board member Keith Smith voted 'no' on the agreement
“I abstained because I have some concerns about the agreement,” Smith said.
Smith's main concern is where the money to overhaul Avondale Mills’ water system will come from. The repairs will cost between $12-$15 million. Right now they're about $6 million short.
Valley plans on making up that shortfall with grant money. The other $12-$15 million is coming from various sources. Avondale Mills is giving Valley $1 million. Valley also plans to borrow $3 million.
Smith worries money Valley will borrow to fix the system could affect their current customers in other areas.
“Possibly something somewhere down the road forces them to pay higher rates for the debt we incur from repairing Avondale's system,” Smith said.
“We're telling all our customers we're not going to have a rate increase,” Valley’s general manager, Calvin Smith, said.
Calvin Smith says the 120 days will give them time to make sure taking over Avondale's system is a good idea and to find the money they still need.
“Within 120 days a lot can happen,” Calvin Smith said.
Board member Keith Smith said several of Valley's current customers are concerned about the take over.
One customer showed up to Monday night’s meeting.
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