Sullivan’s Island water supply could be cut off amid dispute with Charleston Water System

SULLIVAN’S ISLAND, S.C. (WCBD) — The town of Sullivan’s Island could have its water supply cut off this summer, amid a dispute with the Charleston Water System.

According to a letter sent to the town from Charleston Water System (CWS) in October 2023, when Sullivan’s Island purchased 750,000 gallons per day of capacity from the Charleston Water System in 1994, it was a 30-year term which expires on July 19, 2024.

The water system tells Sullivan’s Island leaders that if there is not a new contract by then, service will be disconnected for the town’s 2,000 residents on July 20.

In addition, in the letter, the water system said the town has been paying $0.88 per thousand gallons of water since 2017, and calls that rate “arbitrary and unsupported by facts.”

Charleston Water System says the rate in 2017 was $0.96, and each year, there is a new projected rate for the town. For example, the rate last year was $1.53 per thousand gallons. At the end of the year, an adjusted rate was given which amounted to $1.11.

CWS also said in the letter to Sullivan’s Island that they are willing to provide water service to the town as long as it pays all outstanding amounts owed to the water system. As of February, that amount totaled $1.08 million.

In previous letters responding to Charleston Water System, Sullivan’s Island Mayor, Patrick O’Neil, said they have been paying the correct rate and that a memorandum of understanding on a rate formula was never approved.

“SI (Sullivan’s Island) has been paying the undisputed portion of the volumetric rate since 2017. SI does not owe capital charges unless SI purchases additional capacity which SI has not done.” a letter dated June 30 to CWS reads.

Sullivan’s Island leaders claim that the contract with the water system is clear that capital charges should not be charged on top of the initial capacity the town purchased in 1994. The town also adds that “because SI has not given written notice to CWS not to renew the contract, the contract will be automatically renewed for 15 years or until July 19, 2039, as set forth in the contract.”

In its October letter responding to the town, CWS CEO, Mark Cline, said CWS cannot agree to a rate formula that does not include capital charges or a perpetual term.

As of now, Sullivan’s Island and Charleston Water System are in legal remediation for the issue.

On Friday, Sullivan’s Island leaders released a statement to News 2:

“It’s disappointing that the leadership at Charleston Water System has apparently decided to ignore the confidentiality agreement put in place during the mediation of our long-standing dispute.

Years ago, CWS decided to raise our rates as if our signed contract with them did not exist.

As CWS knows, we’ve simply been continuing to pay the undisputed amount set in our long-standing, signed agreement.

We hope everyone will understand we’re standing firm on the principle that signed contracts are signed contracts. It’s the right thing to do for our citizens.

We will continue our good faith efforts to reach an appropriate agreement through mediation, or if need be, in the court.”

– Sullivan’s Island town leaders