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Docket: UW72302
IN THE MATTER of the Water and Sewerage Act, R.S.P.E.I. 1988, Cap W-2 and the Island Regulatory and Appeals Commission Act, R.S.P.E.I. 1988, Cap. I-11;
Order: UW18-02AND IN THE MATTER of an application by the Granville Water Utility Inc. for approval to increase annual water rates and charges.
BEFORE THE COMMISSION
on Monday, the 10th day of September, 2018.
J. Scott MacKenzie, Q.C., Chair
M. Douglas Clow, Vice-Chair
Order
WHEREAS
Granville Water Utility Inc. (the "Utility") filed an
application with the Island Regulatory and Appeals Commission (the "Commission") for approval to increase annual water rates and charges,
effective January 1, 2018;
AND WHEREAS
following receipt of the application, the
Commission issued a Notice inviting written comments on the Utility's
proposal;
AND WHEREAS
in response to the Notice of Application, two comments were received from ratepayers;
AND WHEREAS
the Commission noted that there was a
transfer of Utility ownership in 2016;
AND WHEREAS
the Commission noted that Granville
customers have benefitted from the recent change of ownership. A review of
Utility finances showed that Granville's expenses had exceeded revenues for
a number of years, which resulted in the accrual of a deficit in excess of
$7,000 by year-end 2016. Under the Commission's authority, rates are
established to offset the necessary costs to operate a utility and should
not be excessive nor insufficient. In the past, the Utility was aware that a
rate increase was needed but no filing was ever submitted. A deficit
recovery amount would have formed part of any rate request prior to the
recent change in ownership.
However, through negotiations, that deficit amount was
extinguished and the current proposal is modeled on a go-forward basis.
Analysis done by the Commission confirms that had a debt recovery component
been included as part of this filing, rates would have increased
approximately double the amount that is currently being sought;
AND WHEREAS
the Commission has considered the
application of the Utility and supporting information, including ratepayers'
written comments and the impact on the Utility regarding the transference of
operations;
AND WHEREAS
the Commission has concluded that increased
revenues are needed to offset the Utility's operating costs;
AND WHEREAS
the Commission considers that an annual
water rate of $360.00 per developed property and an annual rate of $180.00
per undeveloped property, effective with service provided on and after
January 1, 2018, are necessary and equitable;
NOW THEREFORE, pursuant to the Water and Sewerage Act and the Island Regulatory and Appeals Commission Act
IT IS ORDERED THAT
1.
The water rate tariff of Granville Water Utility Inc., as set out in
schedule 1 annexed hereto and forming part of this Order, is approved and
declared effective as of January 1, 2018, and shall remain in effect until
otherwise ordered by the Commission; and
2.
The Rules and Regulations approved and declared effective on January
1, 2008 under Commission Order
UW08-03, continue in effect until otherwise
ordered by the Commission.
DATED
at Charlottetown, Prince Edward Island, this 10th day of September, 2018.BY THE COMMISSION:
J. Scott MacKenzie, Q.C., Chair
M. Douglas Clow, Vice-Chair
NOTICE
Section 12 of the Island Regulatory and Appeals Commission Act reads as follows:
Parties to this proceeding seeking a review of the Commission's decision or order in this matter may do so by filing with the Commission, at the earliest date, a written Request for Review, which clearly states the reasons for the review and the nature of the relief sought.
Sections 13.(1), 13(2) 13(3) and 13(4) of the Act provide as follows:
13.(1) An appeal lies from a decision or order of the Commission to the Court of Appeal upon a question of law or jurisdiction.
(2) The appeal shall be made by filing a notice of appeal in the Court of Appeal within twenty days after the decision or order appealed from and the rules of court respecting appeals apply with the necessary changes.
(3) The Commission shall be deemed to be a party to the appeal.
(4) No costs shall be payable by any party to an appeal under this section unless the Court of Appeal, in its discretion, for special reasons, so orders.
Schedule 1
Approved: Island Regulatory
and Appeals Commission
Effective: January 1, 2018
Order Authorizing Tariff: IRAC/UW72302/UW18-02
WATER RATE TARIFF
Granville on the Water Utility Inc.
EFFECTIVE: January 1, 2018
This rate tariff is issued pursuant to Commission Order UW18-02 and specifies
the rates and charges applicable to services provided by the
Granville on the Water Utility Inc.
Rules
and regulations governing the types of services and manner
in which such
services are provided are contained in the
approved effective January 1, 2008 (per Order UW08-03).
Water Services Rates and Charges
Application:
Rates and charges apply to
water services provided to properties served, or capable of being served, by the Granville on the Water Utility Inc. (NO WATER SERVICE LINE TO EXCEED 3/4 INCH)Flat Rate:
$360.00 per year for each developed property with available water service
Frontage Rate:
$180.00 per year for each developed property with available water service