San Joaquin Cogen might not be getting the water that they need just yet, but they are getting a reduced rate for discharging the water they do have into Lathrop’s collection system.
Last week the Lathrop Council approved a consent item that will allow the Lathrop-based energy production company to receive a discount on the water discharge rates they’re currently paying.
According to the staff report, the business – which uses natural gas to heat water and spin a turbine to generate electricity – has cut down its overall operating hours from 7,000 to only 500. The rate that they were paying at the height of the facilities use, the report says, is not cost-effective for the company at their current capacity.
Even with the reduction the business it would generate just over $70,000 for Lathrop’s sewer fund over the course of the 12-month agreement. Not agreeing to do so could force the facility to close down.
A separate item that would have struck a temporary agreement to provide the company with city water – requesting 250 gallons-per-minute in order to stay in business – was pulled from the agenda by city staff. That separate agreement would have provided additional revenue for the water fund. No information about whether they found a separate source after the private well owner that was supplying the plant opted not to renew their lease was provided.