The PUB approved a rate rider of $2.75 per 1000 gallons for the recovery of 2011, 2012 and 2013 shortfalls in the Utility. It was estimated that the rate rider (depending on volume of water consumed) would recover the deficit by June 30, 2017 when the rate rider was to expire. Inadvertently the rate rider was not removed until December 31, 2017. This resulted in an overcollection of $3740.00. The rate rider has been removed. If it had been removed on June 30, 2017, the shortfalls would not have been fully recovered. The overcollection has been remained in the Utility for future use. This has been fully reported to the PUB.
In 2018, Council determined it was prudent, and also consistent with the PUB policy for 3-year rate reviews, to review the rates for adequacy to ensure the financial requirements for the Utility going forward are met. The application now before the PUB for increased rates reflects the results of this review. The Municipality hired a consultant to assist it with this review.
The Utility has come a long way since those repeated years of shortfalls and with past rate increases and this proposed increase, Council believes the Utility financial strength and its ability to provide a safe supply of drinking water and safe sewer treatment discharges meeting environmental requirements will continue to improve.
The decision to hold a public hearing is a decision of the PUB. In the Notice of Application they are seeking public input into the rate application and based on this input will decide if any further process is required.