MANAGING FOR SUSTAINABILITY
Responses to Questions we heard at the PUC hearing
WHY THE NEW AGREEMENT?
Poland Spring is a customer of the Fryeburg Water Company (FWC), a local water utilityregulated by
Public Utilities Commission (PUC). The rates FWC charges PolandSpring, which are determined by the PUC, are the same rates FWC charges its othercustomers. The new agreement between FWC and Poland Spring would replace theexisting agreement that was signed in 1997 and approved by the PUC. FWC filed thenew agreement with the PUC for approval in August 2012.
Financial stability and reliable revenue
Once approved, the newly proposedagreement would give greater financial stability to the FWC and its ratepayers byestablishing a predictable revenue stream from Poland Spring through fixed leasepayments and a fixed minimum purchase obligation:
Poland Spring will continue to pay for water at the rate charged by FWC andapproved by the PUC.
Poland Spring will pay a set amount of $12,000 per month to lease the waterpumping facility, a fixed amount not tied to volume.
Poland Spring must pay for a minimum of 75 million gallons per year whetherwe withdraw this amount or not.
WHY A 20-YEAR AGREEMENT?
Steady Source of income-
The contract length is 20 years with five 5-year options thatwill not go into effect unless both parties agree
The length of the proposed agreementis something that both the FWC and Poland Spring wanted. Municipal water companiesoften seek long-term contracts because they provide a predictable, steady source of income. The 20-year timeframe will help FWC pay operational and maintenance costs
Fryeburg Water Company’s Proposed
Agreement with Poland Spring