- Associated Press - Tuesday, December 9, 2014

SAGINAW, Mich. (AP) - An agreement by the Saginaw-Midland Water Supply Corp. to sell water to Bay County is expected to lead to savings for the cities of Saginaw and Midland.

The Saginaw News reports (https://bit.ly/1znW3XV ) the water supplier’s Manager Mike Quinnell told Saginaw City Council on Monday that economics is driving the move. He says Saginaw can anticipate paying roughly $700,000 to $800,000 less each year for the same amount of raw water it’s currently receiving.

Saginaw-Midland Water Supply is owned by the cities. It can deliver up to 120 million gallons per day to Saginaw and Midland, but the cities only need at most 75 million gallons a day. The agreement calls for supplying 22 million gallons a day to Bay County.

Despite the savings, however, Saginaw Water and Wastewater Director Kim Mason says that Saginaw’s water customers shouldn’t assume that their water rates will drop. Mason says upcoming improvement projects likely will offset the savings.

Quinnell says Bay County’s $60 million treatment plant is expected to be operational by July. The new facility will receive the raw water for treatment and then distribute water to 15 municipalities that together make up the Bay Area Water Authority.

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Information from: The Saginaw News, https://www.mlive.com/saginaw

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