Georgetown sets water rate for coal mine

Georgetown sets water rate for coal mine

GEORGETOWN — City officials have set the water rate the Sunrise Coal will pay after the first year of the city's 30-year contract with the company, over the opposition of two city council members.

Georgetown City Council members voted 6-2 this week to charge the company 60 percent of the in-city, residential rate for water for Years 2 through 30 of the contract. The company will pay 100 percent of the in-city residential rate during the first year.

The in-city residential rate is currently $6.34 per 1,000 gallons of water used each month. Sunrise would pay 60 percent of that rate, or about $3.80 per 1,000 gallons of water.

Council members voted unanimously on June 17 to sell up to 500,000 gallons of water a day to the proposed Sunrise Coal mine that to be built near Homer. The water will be used for washing the coal and for the mining process.

Alderman Adam Hart said that the council was, in effect, agreeing to a lower rate for the company to offset the cost of the water line infrastructure that the company will have to install.

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