The City of Swift Current and SaskPower have come to terms on a water supply agreement for the Chinook Power Station.

The 30-year deal will see SaskPower buy around $125,000, about 35 million litres, of water annually at the City's commercial water rate.

They will also give the City ownership of the 18-kilometre waterline that runs from the power station to the south hill reservoir, and pay the City annually for maintenance costs for the pump house and waterline.

Mitch Minken, the general manager of infrastructure and operations with the City of Swift Current, said he's a big fan of the deal between the Crown corporation and the City.

"We have the capacity at our water treatment, this provided water sales, so it's a revenue source for us, a pretty substantial revenue source," he said. "They're paying us a maintenance cost to maintain the pipeline and the pump house, along with paying us for the actual water that they're using. This has turned out to be a great agreement for the City."

The deal also includes SaskPower picking up half of the $3.245 million bill for the upgrades to the south hill reservoir and pump house.

"We weren't intending to do that upgrade quite as quickly as we did, but because of the partnership and requirement it let us do that upgrade to the pumping station earlier," Minken said. "Which provides for redundancy for us to do maintenance on the pumps that feed the south side of the city, as well as increased pumping capacity, which improves the water service on that side of the city as well."

According to Minken, the amount of water needed by the Chinook Power Station each year will have no impact on the City's source of water, as it only makes up about one per cent of the capacity of the water treatment plant.

"This is just good use of the water treatment plant and good revenue for the City," he said.

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