“The original prices we went into the market with are just no longer sufficient to cover the cost of the claims,” Carmichael said.
The city, in exchange for sending out solicitations to Watershed customers, receives a 10 percent cut of revenue generated when residents purchase the product. Atlanta has received about $174,000 in royalty payments, according to city officials. The funds are directed to the Care & Conserve Program, which promotes water conservation and helps pay water and sewer bills for the poor.
USP’s three-year contract with the city ends this fall. City officials have the option to renew.
A handful of other cities in the metro area are part of the program, including Auburn, Powder Springs, Garden City and Union City, USP officials said. Rates for those cities are not changing, Carmichael said.