Order UW09-04 - Cavendish Sewer Utility - Rate Application

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Docket: UW46307
Order: UW09-04

IN THE MATTER of an application by the Cavendish Sewer Utility for an increase in its schedule of sewer rates and charges.

BEFORE THE COMMISSION

on Thursday, the 30th day of July, 2009.

Maurice Rodgerson, Chair
Chester MacNeill, Commissioner

Order

WHEREAS the Cavendish Sewer Utility (the "Utility"), by application filed on April 8, 2009, applied for approval to increase its annual sewer rates and charges;
AND WHEREAS the Utility, in its application, proposed to introduce a two-tiered Tariff whereby residents in the core area of the Resort Municipality would be subject to a different rate than those residing within the Seawood Estates subdivision;

AND WHEREAS, specifically, the Utility proposed the following annual rate structure, commencing January 1, 2009;

Current Rates

Proposed Rates

Type of Service

All Cust.

Resort Core

Seawood Estates

Unmetered

Per Unit

$262.07

$306.62

$484.83

Metered

Customer Charge

$161.85

$189.36

$189.36

Demand Charge, Per Unit

$76.56

$89.58

$141.64

Flow Charge, Per Cubic Metre

$0.26

$0.30

$0.30

Frontage Charge (As applicable)

Per Lineal Foot

$0.90

$1.05

$1.67

AND WHEREAS by notice published in local newspapers following receipt of the said application, the Commission invited written comments on the Utility's proposed rates;

AND WHEREAS following a request by certain Seawood residents for an extension of the filing deadline for comments, the Commission, after consultation with the Utility and upon consideration of the request, extended the deadline to June 26, 2009;

AND WHEREAS the Commission subsequently received five written submissions in response to the public notice;

AND WHEREAS of the five responses received, four were from Seawood customers who primarily did not agree with the concept of having a distinct rate for Seawood ratepayers;

AND WHEREAS during the public notice process, representatives of the Seawood Estates Property Owners Association ("SEPOA") initiated discussions with the Cavendish Utility to develop an alternative rate structure which would be less divisive within the community;

AND WHEREAS, subsequently, the parties advised that, if acceptable to the Commission, SEPOA and the Utility agreed on the continuation of a uniform rate for all customers with a supplemental fee applicable to Seawood ratepayers which would recover Seawood infrastructure costs over a set amount of time;

AND WHEREAS the Commission received ten written responses from Seawood residents in support of the alternative rate proposal;

AND WHEREAS the Commission has considered the Utility's submission and the alternative suggested rate proposal, as well as all responses to the public notice;

AND WHEREAS the Commission recognizes that, due to governing regulations, the Cavendish Utility is unable to recover capital contribution costs within the Seawood subdivision which are normally collectible by the Utility from serviced residents;

AND WHEREAS the Commission also recognizes that the capital contribution charge helps to minimize the Utility's annual rates overall and that all customers outside of Seawood have been subjected to the one-time charge;

AND WHEREAS the Commission considers that it is not unreasonable for Seawood customers to share in the capital costs in a similar manner as their community counterparts and that the proposed supplemental fee for Seawood customers would provide a level playing field for all ratepayers in Cavendish;

AND WHEREAS the Commission notes that Seawood customers generally support the concept of having to contribute towards the provision of service but prefer to pay the amount over an extended period of time, and that the Utility is in agreement with this approach;

AND WHEREAS the supplemental fee will become part of the Utility's tariff and, as such, will be subject to Commission review and approval prior to any amendments;

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

the Utility's share of infrastructure program investments for sewer services has resulted in increased operating costs;

increased expenditures associated with the ongoing operation and maintenance of the pollution treatment facility have also impacted the Utility's overall operating costs; and

the Utility's forecasted operating expenses are reasonable in relation to the services provided;

AND WHEREAS it appears to the Commission that having a uniform rate in the community, with a supplemental fee applicable to Seawood customers, is fair and reasonable;

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 existing Tariff for sewer services of the Cavendish Sewer Utility is revoked and the Tariff appended to, and forming part of, this Order is substituted therefore; and

2. The appended Tariff is approved and declared effective on January 1, 2009, and shall remain in effect until otherwise ordered by the Commission.

DATED at Charlottetown, Prince Edward Island, this 30th day of July, 2009.

BY THE COMMISSION:

Maurice Rodgerson, Chair

Chester MacNeill, 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), 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.

Approved:   Island Regulatory and Appeals Commission
Effective:    January 1, 2009
Order Authorizing Tariff: IRAC/UW47306/UW09-04

Cavendish Sewer Utility

SEWER TARIFF

THIS TARIFF SPECIFIES THE RATES AND CHARGES
APPLICABLE TO SERVICES PROVIDED BY THE
CAVENDISH SEWER UTILITY

RULES AND REGULATIONS GOVERNING THE TYPES
OF SERVICES AND MANNER IN WHICH SUCH
SERVICES ARE PROVIDED ARE CONTAINED IN THE
PRINCE EDWARD ISLAND MUNICIPAL SEWERAGE
UTILITIES GENERAL RULES AND
REGULATIONS

EFFECTIVE: JANUARY 1, 2009

Sewer Rates and Charges

Application:

The following annual rates and charges apply to sanitary sewerage services provided to premises served or capable of being served by the Cavendish Sewer Utility.

Flat Rates (Unmetered):

For each single-family dwelling or unmetered customer assessed one proportionate sewerage unit: $306.62.

Metered Service:

For each metered customer the sum of:

A.    a customer charge of $189.36;

B.    a demand charge of $89.58 per proportionate demand unit calculated in accordance with the Proportionate Demand Charges contained on page 3 of this Tariff; and

C.    a flow charge of $0.30 per cubic meter.

The metered flow shall be determined by metering the well water consumed.

Minimum Bill:

The minimum bill to any customer shall be the applicable customer and demand charges.

Frontage Charge:

A frontage charge of $1.05 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 Demand 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).

The maximum bill to any customer for frontage shall be $500.00.

Tariff Exemptions:

A.    Existing single-family residential dwellings which are in excess of 100 meters from the sanitary sewer main shall be exempt from the applicable demand and flow charges.

B.    Non-leased farm land used exclusively for farming purposes shall be exempt from all applicable rates and charges.

C.    The property known as the Cavendish Cemetery shall be exempt from all applicable rates and charges.

Special Charges

Sewage Dumping Charges:

The Utility may, at its discretion and subject to such terms and conditions as it considers necessary and advisable, permit an individual or corporation to dump sanitary sewage at the Utility's treatment facilities. Where such dumping is permitted, a sanitary sewage waste hauling contractor duly licensed pursuant to the Environmental Protection Act Sewage Disposal Regulations and acceptable to the Utility must be employed by the individual or corporation at such rates and charges as the individual or corporation and the contractor may agree upon.

The dumping charges to the contractor are as follows:

For premises within the Community of Cavendish:

Per load: up to 1,500 gallons $ 8.00
Per load: 1,501 gallons - 3,000 gallons $16.00

For premises outside the Community of Cavendish:

Per load: up to 1,500 gallons $13.00
Per load: 1,501 gallons - 3,000 gallons $26.00

Seawood Estates Infrastructure Contribution Charge:

In addition to the applicable charges set out in this tariff, all sewer customers in the Seawood Estates subdivision who are served or capable of being served will be subject to a supplemental charge of $175.00 per lot, per year.

The contribution charge will be subject to IRAC review and amendment from time to time as necessary and will remain in effect until such time as the related Seawood infrastructure debt has been serviced.

Proportionate Sewer Charges

TYPE OF CUSTOMER
UNIT VALUE ANNUAL SEWER CHARGE
TYPE OF CUSTOMER
UNIT VALUE ANNUAL SEWER CHARGE

SINGLE-FAMILY DWELLING
1.00 $89.58 DOCTORS' & DENTISTS' OFFICES AND BEAUTY & BARBER SHOPS
     With Separate Service

1.00 $89.58

INDIVIDUAL APARTMENT 0.80 $71.66      Combined With Other Service 0.50 $44.79

MOBILE HOME 0.70 $62.71 LAUNDROMAT WITH MACHINES USING OVER 30 GALLONS PER WASH
     For First Machine

3.00 $268.74

SENIOR CITIZENS HOME, Per Unit 0.60 $53.75      For Second Machine 2.00 $179.16

     For Each Additional Machine 1.00 $89.58

CONVENT, INSTITUTIONAL DORMITORY, ROOMING OR BOARDING HOUSE
     For Up to Five Persons

1.00 $89.58 LAUNDROMAT WITH MACHINES USING 30 OR FEWER GALLONS PER WASH
     For First Machine

     For Each Additional Person 0.20 $17.92 2.00 $179.16

     For Second Machine 1.50 134.37

MOTELS AND TOURIST COTTAGES
     With Housekeeping Facilities,
     Each Unit      For Each Additional Machine 0.75 $67.19

0.50 $44.79

     With Bathroom Facilities Only,
     Each Unit SERVICE STATION
     Without Carwash 1.00 $89.58

0.30 $26.87      With Carwash 2.00 $179.16



TOURIST HOME
     For First Bathroom 1.00 $89.58 RESTAURANTS AND SNACK BARS 1.00 $89.58

     For Each Additional Bathroom or
     Washroom 0.30 $26.87      For Each Ten Seats, an Additional
     Amount of 0.25 $22.40

HOSPITAL
     Without Laundry Facilities,
     Per Bed PREMISES LICENSED BY THE P.E.I.
LIQUOR CONTROL COMMISSION:
     Restaurant, Lounge, Dining Room
     or Club

0.50 $44.79

     With Laundry Facilities,
     Per Bed 0.75 $67.19 1.00 $89.58

     SEAT CHARGE: Calculate 75% of
     Fire Marshal's rating OR Based on
     actual seat count, then charge for
     each five seats an additional
     amount of

SCHOOLS, Per Classroom 1.00 $89.58 0.25 $22.40



STORES, BANKS, CLUBS, CHURCHES, HALLS, RECREATIONAL FACILITIES AND PLACES OF BUSINESS
     For First Washroom Facility DRIVE-IN RESTAURANT OR THEATRE
     With Canteen 1.00 $89.58

     For First Washroom and Toilet Facility 1.00 $89.58

1.00 $89.58
     For Each Additional Washroom and
     Toilet Facility
0.50 $44.79

     For Each Additional Toilet or Urinal 0.50 $44.79