Docket: UW22306
Order: UW01-01

IN THE MATTER of an application by the Town of Montague Sewer and Water Collection and Treatment Corporation for approval to implement metered water and sanitary sewer rates.

BEFORE THE COMMISSION

on Thursday, the 22nd day of November, 2001.

Ginger Breedon, Chair
Maurice Rodgerson, Vice-Chair
James Carragher, Commissioner

---

Order

---

WHEREAS the Town of Montague Water & Sewer Utility (the "Utility"), by application filed on March 14, 2001, applied to the Commission for approval to implement metered water and sanitary sewer rates and charges;

AND WHEREAS, by public notice published in a local newspaper following receipt of the said application, the Commission invited written comments on the proposed application;

AND WHEREAS the Commission subsequently received one written submission on the application opposing the application and seeking a reduction in the requested rates; 

AND WHEREAS the Commission has considered the submissions of the Utility and the response to the public notice;

AND WHEREAS the Commission has, based on a thorough analysis of the application, concluded that:

• the implementation of metered rates will result in a fairer allocation of costs among the utility's customers;

• capital expenditures associated with the upgrade of the water system and those associated with the upgrade of the sewage treatment facility will increase the overall costs of operating the utility; and

• the forecast operating expenses of the Utility are reasonable in relation to the services provided;

AND WHEREAS it appears to the Commission that:

• a reduction of approximately ten percent in the Utility's proposed Tariff of Rates and Charges will generate sufficient revenues to enable the Utility to provide reasonable and adequate service and facilities;

• the phasing in of rates over a four-year period for customers that have a combined water and sewer charge increase of over 25% or $100.00 is fair and reasonable; and

• the reduced Tariff of Rates and Charges has been determined in accordance with the generally accepted public utility practices and has  taken into consideration local conditions and circumstances.

AND WHEREAS it further appears to the Commission that the Tariff of Rates and Charges approved herein is necessary and equitable;

NOW THEREFORE, pursuant to the Island Regulatory and Appeals Commission Act and the Water and Sewerage Act;

IT IS ORDERED THAT

1.  the proposed Tariff of Rates and Charges is varied in accordance with the Tariff appended to, and forming part of, this Order;

2.  the existing Tariffs of the Town of Montague Sewer and Water Collection and Treatment Corporation are revoked, effective December 31, 2001, and the Tariff appended to, and forming part of, this Order, is substituted therefor; and,

3. the appended Tariff is approved and declared effective for meter readings taken on and after January 1, 2002  and for bills issued on and after January 1, 2002 and the said Tariff shall remain in effect until otherwise ordered by the Commission.

DATED at Charlottetown, Prince Edward Island, this 22nd day of November, 2001.

BY THE COMMISSION:

Ginger Breedon, Chair
Maurice Rodgerson, Vice-Chair
James Carragher, Commissioner

---

NOTICE

Section 12 of the Island Regulatory and Appeals Commission Act reads as follows:

12. The Commission may, in its absolute discretion, review, rescind or vary any order or decision made by it or rehear any application before deciding it.

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) and 13(2) of the Act provide as follows:

13.(1) An appeal lies from a decision or order of the Commission to the Appeal Division of the Supreme Court upon a question of law or jurisdiction.

(2) The appeal shall be made by filing a notice of appeal in the Supreme Court within twenty days after the decision or order appealed from and the Civil Procedure Rules respecting appeals apply with the necessary changes.

---

Approved:   Island Regulatory and Appeals Commission
Effective:    January 1, 2002 
Order Authorizing Tariff: IRAC/UW22306/UW01-01

Montague Sewer and Water
Collection and Treatment
Corporation

THIS TARIFF SPECIFIES THE RATES AND CHARGES
APPLICABLE TO SERVICES PROVIDED BY THE
MONTAGUE SEWER AND WATER COLLECTION
AND TREATMENT CORPORATION

---

Contents

Metered Rates

Unmetered Rates

Municipal Services Rates

Sanitary Sewage Surcharge

Phase-In Rate

---

Metered Rates

Application:

The following rates and charges apply to metered services provided customers by the Town of Montague Sewer and Water Collection and Treatment Corporation.

Customers not connected to the water system but capable of being served shall be billed the appropriate water service demand charge, plus the applicable unmetered rate for sewerage services contained on page 2 of this Tariff.

Water & Sanitary Sewerage Service:

Demand Charge				Commodity Charge
Meter Size	Monthly	Quarterly		$0.58 per cubic meter
5/8 inch	$14.70	$44.11
3/4 inch	$18.76	$56.28
1 inch	$26.87	$80.62
1 1/2 inch	$47.16	$141.48
2 inch	$71.50	$214.50

Water Service:

Demand Charge				Commodity Charge
Meter Size	Monthly	Quarterly		$0.26 per cubic meter
5/8 inch	$10.41	$31.24
3/4 inch	$13.62	$40.87
1 inch	$20.05	$60.14
1 1/2 inch	$36.10	$108.30
2 inch	$55.37	$166.10

Minimum Bill:

The minimum bill is the demand charge.

---

Unmetered Rates

Application:

The following rates and charges apply to unmetered services provided customers served or capable of being served by the Town of Montague Sewer and Water Collection and Treatment Corporation.

Flat Rates:

No water service line to exceed 3/4 inch.

Single-Family Dwellings
		Monthly	Quarterly	Annually
Water & Sanitary Sewerage Service:		$26.59	$79.76	$319.04
Sewerage Service:		$10.79	$32.38	$129.53

 

Non-Single-Family Dwellings
Sewerage Service:
Equivalent Meter Size for Water Service	Demand Charge			Commodity Charge
	Monthly	Quarterly		$0.32 per cubic meter based on estimated water consumption
5/8 inch	$4.29	$12.87
3/4 inch	$5.14	$15.41
1 inch	$6.83	$20.49
1 1/2 inch	$11.06	$33.17
2 inch	$16.13	$48.40

Special Flat Rates:

The Utility may approve the use of special flat rates where it is considered expedient due to the inadvisability of installing a meter due to exposure, etc., such as residential construction, temporary water fountains and similar devices. This type of service is to be provided only on an intermittent basis and is not to cover heavy consumption use.

Rates for Water Supplied from Fire Hydrants:

When the use of any fire hydrant is desired for supplying water for flushing sewers, drains or any other purpose, other than for fire protection, the Utility may grant a permit under such terms, conditions and rates as it may see fit, including arrangements regarding supervision of the opening and closing of the hydrant.

---

Municipal Services Rates

Fire Protection Charge:

The Utility shall charge the Town of Montague annually for water system facilities provided for fire protection services, the amount of 20% of the previous year's total water utility expenditures.

---

Sanitary Sewage Surcharge

Application:

In cases where any customer of the Utility discharges a sewage effluent into the sewer system which is excessively strong or where the suspended solids or fat and grease components are excessively high, the Utility may determine by sample testing and such other means as may be available, the degree of excessive contamination and require the customer to pay an additional surcharge in accordance with the concentration of the suspended solids (SS) and fat and grease (GR) proportions as set forth below.

Surcharge:

In cents per 1,000 imperial gallons

SS(ppm) -  350	x 5.3	+	GR(ppm) - 100	x 5.3
350			100

In cents per cubic meter

SS(ppm) -  350	x 1.166	+	GR(ppm) - 100	x 1.166
350			100

---

Phase-In Rate

Special Phase-In Rate:

Customers whose bills increase annually by 25% or more or $100.00 or more, whichever is greater, as a result of the implementation of this Tariff, shall have the increase phased in over four years by adding the amounts set out below to the customer's bill calculated under the former Tariff:

For the year:

2002	25% of the difference between the bill calculated under the former Tariff and this Tariff
2003	50% of the difference between the bill calculated under the former Tariff and this Tariff
2004	75% of the difference between the bill calculated under the former Tariff and this Tariff

Commencing in 2005, the bill shall represent 100% of the amount calculated under this Tariff.

The special phase-in rate applies to existing utility customers only.0