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Aberdeen Sets Bulk Water Usage Rate: Monthly Fee, Higher Price to Use More Than 10 Million Gallons Per Month

Posted on: Tuesday, 9 May 2006, 06:03 CDT

By Jackie Burke, American News, Aberdeen, S.D.

May 9--With talks of a new ethanol and/or beef plant coming to the area and another ethanol plant wanting to expand, the city of Aberdeen has set a rate for bulk water usage.

The current charge for non-bulk users is $2.15 per thousand gallons of water, Aberdeen Mayor Mike Levsen told city council members on Monday. With the new bulk rate, anyone using more than 10 million gallons a month will be charged a monthly fee of $15,000 plus $2.50 per thousand gallons.

"The price is driven by the cost of treatment," Levsen said.

In determining the new bulk rate, the Public Works Department had many things to consider. Because of the new water treatment plant, "we're on the high end of water because we just made improvements," City Engineer Robin Bobzien said. The chemicals, electricity and personnel used to operate the equipment were taken into account in determining the new rate.

Glacial Lakes CEO Tom Branhan told council members Monday night he believed the rate to be fair. Branhan's Watertown-based company wants to build an ethanol plant west of Aberdeen and has asked for Aberdeen water.

When comparing the rate to Watertown, Aberdeen's is higher. He told council members that Watertown charges $1.33 per thousand gallons but believes that this is "a competitive rate for a brand-new facility."

The new rate will not have a negative effect on most Aberdeen residents or businesses. According to Bobzien, Aberdeen's largest customer uses about 1 million gallons of water a month, which is well under the 10 million gallons needed to be considered a bulk user.

Although there has been no official decision whether Glacial Lakes will build in the area, now that the bulk water rate has been established, city officials believe that Glacial Lakes -- if they accept this rate -- will be looking to move quickly, with the desire to begin construction of the new plant in September. City officials say the ball is now in Glacial Lakes' court.

Reporter Jackie Burke; (605) 622-2303 or 1-800-925-4100 ext. 303; jburke@aberdeennews.com

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Copyright (c) 2006, American News, Aberdeen, S.D.

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Source: American News (Aberdeen, S.D.)

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