Sallal/ North Bend Contract Update

This is an update as well as a note to address some misinformation concerning the status of a water supply agreement with North Bend.  We have received email from some members purporting that we are about to sign a contract with North Bend.  This is untrue.  The status of a possible agreement with North Bend has not changed since our members meeting on 7/17.   Since our members meeting on 7/17 we have had one meeting with North Bend regarding a water supply agreement where we discussed questions and concerns raised by both sides.   North Bend recently commissioned Golder Associates to review North Bends anticipated mitigation water needs.  The study used for the water rights granted to North Bend by DOE is about 10 years old.  DOE believes that the mitigation volume in the ROE was grossly overstated, perhaps five-fold. North Bend is also exploring other means to provide mitigation.  It is anticipated that this information will be key in discussions of any agreement that Sallal and North Bend may enter into and the information is anticipated to be available within the next 60-90 days.  This is great news as many members requested that new water usage data be reviewed prior to considering a contract.  We have also requested our rate consultant to prepare a projection of how future water rates may be affected without the addition of new members.  This data will be helpful in giving the members an idea of possible rate increases that would likely occur without the added revenue gained by the addition of new members beyond what we have already planned.

We will continue to provide updates when new information is available.