22-14 Water Supply Plan - Johnston

22-14 Under the water plan, is it correct that under the Johnston water agreement, CREC has allowed themselves a provision to alter its water consumption at any time? What if CREC decides to sell water 3rd party to another vendor, outside of their sole use? Do you agree that there is no provision in the agreement that would prevent you from doing so? Please explain.

RESPONSE 22-14

Invenergy does not understand what provision of the Agreement (if any) you are referring to in this question.  In Section 7(a)(ii) of the Agreement, CREC does represent that is has “the ability to adjust its Daily Water Demand through the use of on-site storage tanks and other operational adjustments between the Standard Demand Flow Rate and the Increased Demand Flow Rate when operating on natural gas.  CREC also has the ability to adjust its daily demand for truck deliveries for any of the Demand Flow Rates by relying on such on-site tanks.” 

The third and seventh whereas provisions of the Water Agreement with Johnston clearly lay out the intentions of the Parties (Invenergy and the Town of Johnston). We repeat those here for clarity:

Whereas, in connection with the operation of the Project, CREC requires a reliable source of water in sufficient quantities to meet the Project’s demand;

Whereas, Johnston has the available water supply capacity and has agreed to supply the Project with a reliable source of water in sufficient quantities to meet the Project’s demands on the terms and conditions set forth herein;

These provisions indicate that the intent of the Parties is to supply the Project’s water needs and not those of third Parties. Invenergy does not have any intention to sell water to a third party.