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Docket: UW17303
Order: UW08-02

IN THE MATTER of an application by the Morell Sewage Collection and Treatment Corporation for an increase of wastewater rates and charges.

BEFORE THE COMMISSION

on Wednesday, the 14th day of May, 2008.

Maurice Rodgerson, Chair
Brian J. McKenna, Vice-Chair
John Broderick, Commissioner
Chester MacNeill, Commissioner

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Order

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WHEREAS the Morell Sewage Collection and Treatment Corporation (the "Utility"), by application filed on January 17, 2008, applied to the Commission for an increase in its Tariff of sewer rates and charges;

AND WHEREAS specifically, the Utility requested approval to increase its current rate of $106.00 per unit per year, in effect since 1991, to $196.00 per unit per year, effective commencing January 1, 2008;

AND WHEREAS following receipt of the application, the Commission published a Notice in the local newspaper inviting written comments on the Utility's proposal;

AND WHEREAS in response to the Notice of Application, several comments were submitted indicating concerns related to the unexpected timing of the application, as well as the amount of the proposed increase;

AND WHEREAS subsequent to the filing of the application, the Utility—based on the desire expressed by several customers for an explanation of the matter—prepared and circulated to its customers a report providing detailed information on the circumstances surrounding the need for a sewer rate increase;

AND WHEREAS the Commission has considered the application of the Utility and supporting information, including the written submissions from the public;

AND WHEREAS the Commission has conducted a thorough analysis of the application, the Utility's audited financial statements and projected revenue and expenditure requirements, and notes that:

• ongoing increased expenditures related to the day-to-day operation and maintenance of the central wastewater treatment facility; and

• costs associated with upgrades undertaken in 2001 and 2006

have increased the Utility's overall expenditure levels and result in the need for additional revenue;

AND WHEREAS the Commission has determined that the proposed rate of $196.00 per unit per year will produce slightly higher than necessary projected revenues and that a lesser rate should adequately meet the Utility's anticipated revenue requirements;

AND WHEREAS the Commission considers that an annual wastewater rate of $156.00 per unit, with a $0.78 frontage rate per lineal foot, effective with service provided on and after January 1, 2008, 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 existing Tariff for wastewater services of the Morell Sewage Collection and Treatment Corporation is revoked and the Tariff appended to, and forming part of, this Order is substituted therefor; and

2.  the appended Tariff is approved and declared effective on January 1, 2008 and shall remain in effect until otherwise ordered by the Commission.

DATED at Charlottetown, Prince Edward Island, this 14th day of May, 2008.

BY THE COMMISSION:

Maurice Rodgerson, Chair

Brian J. McKenna, Vice-Chair

John Broderick, Commissioner

Chester MacNeill, Commissioner

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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, 2008
Order Authorizing Tariff: IRAC/UW17303/UW08-02

 

Morell Sewage Collection and Treatment Corporation

SEWER TARIFF

THIS TARIFF SPECIFIES THE RATES AND CHARGES APPLICABLE
TO SERVICES PROVIDED BY THE MORELL SEWAGE COLLECTION AND TREATMENT CORPORATION

Sewage Rates and Charges

Application:

The following rates and charges apply to wastewater services provided to premises served or capable of being served by the Morell Sewage Collection and Treatment Corporation.

Rates:

$156.00 per unit per annum in accordance with the appended Proportionate Sewage Charges.

Frontage Charge:

A frontage charge of eighty-three cents ($0.78) per lineal foot per annum applies to all land adjacent to streets, roads or highways on which there are no buildings or structures or where sanitary disposal service is not required but which land is capable of being served by the existing facilities of the Utility. In the case of premises billed under the Proportionate Sewage Charges, an exemption of ten (10) feet frontage for each one-tenth of a unit will be allowed. In the case of corner lots with sewerage facilities on both sides, the frontage charge applies to the full frontage on the longest side, and the full frontage less one hundred (100) feet on the other side (less allowable exemption, if any).

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PROPORTIONATE SEWAGE CHARGES

TYPE OF CUSTOMER	UNIT VALUE	ANNUAL SEWAGE CHARGE		TYPE OF CUSTOMER	UNIT VALUE	ANNUAL SEWAGE CHARGE
SINGLE-FAMILY DWELLING	1.00	$156.00		DOCTORS' & DENTISTS' OFFICES AND BEAUTY & BARBER SHOPS      With Separate Service
					1.00	$156.00
INDIVIDUAL APARTMENT	0.80	$124.80		Combined With Other Service	0.50	$78.00
MOBILE HOME	0.70	$109.20		LAUNDROMAT WITH MACHINES USING OVER 30 GALLONS PER WASH      For First Machine
					3.00	$468.00
SENIOR CITIZENS HOME, Per Unit	0.60	$93.60		For Second Machine	2.00	$312.00
				For Each Additional Machine	1.00	$156.00
ROOMING HOUSE, BOARDING HOUSE, CONVENT, INSTITUTIONAL DORMITORY      For Up to Five Persons
	1.00	$156.00		LAUNDROMAT WITH MACHINES USING 30 OR FEWER GALLONS PER WASH      For First Machine
For Each Additional Person	0.20	$31.20			2.00	$312.00
				For Second Machine	1.50	$234.00
MOTELS AND TOURIST COTTAGES      With Housekeeping Facilities,      Each Unit				For Each Additional Machine	0.75	$117.00
	0.50	$78.00
With Bathroom Facilities Only,      Each Unit				SERVICE STATION      Without Carwash	1.00	$156.00
	0.30	$46.80		With Carwash	2.00	$312.00
TOURIST HOME      For First Bathroom	1.00	$156.00		RESTAURANTS AND SNACK BARS	1.00	$156.00
For Each Additional Bathroom or      Washroom	0.30	$46.80		For Each Ten Seats, an Additional      Amount of	0.25	$39.00
HOSPITAL      Without Laundry Facilities,      Per Bed				PREMISES LICENSED BY THE P.E.I. LIQUOR CONTROL COMMISSION:      Restaurant, Lounge, Dining      Room or Club
	0.50	$78.00
With Laundry Facilities,      Per Bed	0.75	$117.00			1.00	$156.00
				SEAT CHARGE:  Calculate 75% of      Fire Marshal's rating OR      the actual seat count,      then charge, for each five      seats, an additional amount of
SCHOOLS, Per Classroom	1.00	$156.00			0.25	$39.00
STORES, BANKS, CLUBS, CHURCHES, HALLS, RECREATIONAL FACILITIES AND PLACES OF BUSINESS      For First Washroom Facility				DRIVE-IN RESTAURANT OR THEATRE      WITH  CANTEEN	1.00	$156.00
				For First Washroom and Toilet      Facility	1.00	$156.00
	1.00	$156.00		For Each Additional Washroom      and Toilet Facility	0.50	$78.00
For Each Additional Toilet or Urinal	0.50	$78.00