Tuesday, April 16, 2013

DWSD Submits Best Offer to City of Flint, Outlines 48% Reduction in Wholesale Water Rates

On April 15, 2013, the City of Detroit Water and Sewerage Department furnished the City of Flint and Karegnondi Water Authority with an 8-page proposal, which offers  the City of Flint and Genesee County a wholesale water rate of $10.46 per Mcf (per thousand cubic feet of water), as compared with the current wholesale rate of $20.00 per Mcf. That amounts to a 48% immediate reduction. Over 30 years, DWSD contends that its proposal would save Flint and Genesee County $800 million.   

DWSD's proposal comes a few days after State Treasurer Andy Dillon approved a decision by the City of Flint to enter into a contract with the Karegnondi Water Authority, and leave DWSD. The State's decision allowed for DWSD to submit a best-and-final-offer by April 15, 2013 at 5:00 p.m.  As of last night, neither Flint nor Genesee County reported having received DWSD's proposal

Note: If you write me (here), I would be glad to send you a copy of DWSD's April 15th proposal. Just put "Flint Water Proposal" in the subject line.

To read DWSD's April 15th proposal online, click here.   

Update (4/16): MLive.com reports here that Flint and Genesee County officials met this morning to discuss Detroit's proposal.  No word yet on whether the proposal offers enough to change Flint's minds.

Update (4/17): No surprise -- the Detroit News reports here that Flint and Genesee County have said "Thanks, but No Thanks" to DWSD's last offer to retain Flint as a customer. Both Oakland and Wayne County executives have openly criticized Flint's decision.        

For more about DWSD Update, click here

1 comment:

Jim Lang said...

Deservedly or not, DWSD's last offer came across as, "Buy our snake oil (again) and you'll save $84 billion in the next 30 years." Fool me once...

-- Jim