A former CEO of Valea, which operates a number of water systems, is resigning over the company’s decision to shut down its water treatment plants in the Carolinas.
In a letter to shareholders Wednesday, Michael C. Shoup, Valea chief executive officer, announced his resignation over a year after Valea filed for bankruptcy.
Valea has been dealing with a major water crisis since 2015, when the state of South Carolina ordered the shutdown of three of its seven water treatment facilities after the city of Columbia announced it would close its plant after the state had declared a state of emergency.
In addition to the water crisis, the state also ordered the closure of the rest of Valeas wastewater treatment plant, which is operated by Duke Energy.
According to Shoup’s letter, Valeas water treatment facility was the site of the largest water spill in U.S. history, which led to more than $2 billion in damages and a $1 billion cleanup bill.
Valleas water distribution network has also been the subject of a number or lawsuits by the public, state regulators and residents.
The company’s CEO, Mark Buhl, has said the closure would result in an increase in costs for consumers.
Vail Water and Electric, a subsidiary of Valeash, has also filed for Chapter 11 protection, which means the company is seeking to restructure its debt.