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North East board concurs it should exit wholesale water business, tables Artesian interconnection decision
Summary
At the Sept. 24 meeting the board agreed the town should not continue as a wholesale water producer, directed staff and counsel to pursue next steps and tabled detailed action on the Artesian interconnection agreements until Oct. 8, 2025.
The Town of North East's Mayor and Commissioners unanimously agreed on Sept. 24, 2025, that the town should not continue as a wholesale water provider and directed the Town Administration and town attorney to pursue next steps, including drafting a letter and addressing legal costs. That decision followed a presentation by Town Administrator Melissa Cook‑MacKenzie and Town Attorney David Beste on two Artesian interconnection agreements (January 2018 and June 2019).
Mayor Kelly Benson summarized the town's three water rate classes — in‑town, out‑of‑town and wholesale — and said the administration's concern was that wholesale customers may be effectively subsidized by retail customers. "As a Board, does the Town of North East want to continue to be a producer of Whole Sale Water, or does the Town not want to be that entity," Mayor Benson asked; the board concurred with the latter position.
The board did not act on the Artesian agreements themselves. Staff reviewed the agreements' term language on the record: the 2018 agreement included a three‑year initial term with up to two one‑year renewals; the 2019 agreement referenced a five‑year term with up to two additional five‑year renewal options and described conditions tied to interconnection completion and commercial operation. After discussion the board tabled further action on the Artesian agreements to the Oct. 8, 2025 meeting to allow administration and counsel to present more information; the transcript notes Artesian representatives are anxious to meet with town officials.
What the board directed: Town Administrator Melissa Cook‑MacKenzie will work with Town Attorney David Beste to draft a letter reflecting the board's concurrence that the town should not remain a wholesale provider and to outline next steps; the administration will cover associated legal fees as the town moves forward.
What's next: The Artesian interconnection agreements remain on the agenda for Oct. 8, 2025, when the board will consider further information from staff and counsel.
