Supreme Court Rules Authority
Can Charge County Lower Rates .
BY TERRY POPE
Brunswick County officials were not surprised by a
N.C. Supreme Court ruling handed down last week m
ihe county's favor.
I Tie decision represents the last hurdle cleared by the
county in its quest for lower water rates from the Lower
Cape Fear Water and Sewer Authority.
I"hc ruling also releases S250,(XX) that will be re
turned to the county's general fund balance, said Board
of Commissioners Chairman Kelly Holdcn.
That money had been posted by the county to pay for
repairs and maintenance to the authority's water system
from 1984 to 1987. It will now help pay for the coun
ty's garbage disposal, said Moldcn.
Although a legal ruling was welcomed by both par
ties as a "friendly lawsuit," it had been all but neutral
ized by a resolution adopted last December by
Brunswick County Commissioners.
Before the two-year-old case had cleared the legal
system, commissioners and the authont) signed an
agreement giving the county a cheaper rate for raw \\a
ter.
Brunswick County argued that it should be charged a
cheaper rate than new customers, which must pay a rate
based on capital improvements to Phase II of the au
thority's system. Since die county would not benefit
from those improvements, it should be given a different
water rate, it argued.
The Supreme Court agreed, suiting that the authority
"could not have become viable if Brunswick County
had not made the contributions that it made" to the re
gional water system.
LCFWSA members are Brunswick, New Hanover,
Bladen, Columbus and Pender counties, plus the cit> of
Wilmington. In 1982, construction of the authority's 14
mile pipeline and 45 million gallons per day intake
plant near King's Bluff on the Cape Fear River in
Bladen County began when Brunswick County ad
vanced the authority S5.6 million in general obligation
bonds.
PrescnUy, Brunswick County is the authority's only
customer. The authority has reached agreement with
three other customers. Cape Industries and Takcda
Industries, both on U.S. 421 near Wilmington, aiul iIk
c ily of Wilmington. New distribution lines must he li
nanccd to supply them with water.
District 3 Commissioner Gene Pinkerton said the
court ruling was gixxl timing lor the county.
"A different rate will certainly improve our dollars
and keep Brunswick County paying our fair share," said
Pinkerton. "We have gotten a lot of benefit from that."
ITie authority must also issue replacement bonds to
pay the county its S5.f> million used to help build the
system. That loan helped the authority obtain SS million
in grants from the U.S. Economic Development
Administration, the ruling states.
ITie county also paid the operating and administra
tive expenses of the authority from October P>X4 to
July I^X?. the court found.
"These were substantial contributions to the authority
without w hich it would not have been able to begin its
operation or stay in business." the court ruling filed last
Wednesday, Aug. 14. states.
The authority had argued that a prior ruling, in
Utilities Co. vs. Mead Corp. in 1953, would block the
authority from giving the county a different water rate
from its other customers. The authority's "common law
duty not to discriminate is the same as for public utili
ties." it argued.
ITie court agreed that a whollv-owned utility could
not discriminate in rates between its parent company
and other customers. However, it noted a difference for
Brunsw ick County.
"In this case, the county docs not own the authority."
the ruling states. "It has made a substantial contribution
to the authority which puts it in a position different
from other members."
Cape Industries has agreed to pay S9(K).(MX) in cash
as a down payment to extend water lines to the compa
ny. provided the remainder of the S3 million pipeline is
financed by the authority over a pcruxl of years.
Takeda Industries is willing to pay Sl.X million in
cash to become a water customer. Wilmington has
agreed to pay its cost of the pipeline the moment water
becomes available to the city.
Lessons In Electricity
V.
bfmc photo by pmil morgan
Twenty-three Brunswick County school teachers, including (above from left) Karen Wilmoth , Nancy
Coble and lx>uise Gause, learned about electricity in a two-day workshop last week sponsored by
Brunswick Electric Membership Corp. BEMC is the first North Carolina electric cooperative to team
up with a local school system to offer teacher in-service education. Ms. Coble and fellow teacher Torie
Williamson joined at least eight BEMC employees in presentations during the hands-on session.
Teachers will have access to activity packets, speakers and check-out from B EMC of a Van de Graajf
static electricity demonstrator for classroom use as part of the joint effort to enhance science educa
tion in the local schools.
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5
Sunday Afternoon Cotch
With waves crashing offshore , John Mc Adams (right) of Chapel Hill and sons (from left) Hps and
Wade look advantage of a sunny Sunday afternoon to cateh minnows and sand crabs at Sunset Beach.
They H ere using a small cast net and a hand net to stock a bucket on the strand.
Leland Parents,
Teachers To Meet
Parents of l.cland Middle School
students will meet with teachers at
one of two evening sessions next
week to "get into the swing of
things".
Spokesman Joyce Caffcc said pa
rents of fourth, fifth and sixth grade
students will meet with teachers at
the school at 7 p.m. Tuesday, Aug.
27, while parents of seventh and
eighth graders will meet Iliursday,
Aug. 29.
More information is available
from her at 37 1 -6361 .
STAFF PHOTO BV SUSAN U^HFR
Catching A Big One
hi scorch of a thriller ride to shore. Steve Voss of Salt luike City
heads into the surf Sunday with his Jloat. From Salt Ijxkc City,
Utah , he and his family are vacationing this week at Sunset Heach.
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