The Town of Sullivan’s Island has reached a $1.1 million agreement with Charleston Water System (CWS) over a contractual dispute. In addition to the payment, the two entities signed a new 40-year contract that ensures water service on the island won’t be interrupted.
A water supply contract between CWS and the town that went into effect in July 1994 was set to last 30 years, but a rate dispute began when it was time to renew the contract. The water utility company said the town owed over $1 million and threatened to cut off the town’s access if that bill wasn’t paid. The town ended up paying CWS $1,138,636.62.
The shutdown was avoided after the agreement was finalized on Tuesday, June 25. The agreement includes a new rate that requires the town to pay $1.40 per thousand gallons of water from July 1 through June 30, 2025. This is an increase from the $0.88 per thousand gallons of water the town previously paid CWS. The rate for the next year could change depending on any possible shortfall. The new deal also includes an increase in water for the town, providing an extra 100,000 gallons per day.
