Order UW10-04 - Hunter River Sewage Collection and Treatment Corporation - Sewer Tariff - Effective November 1, 2010

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Docket: UW47302
Order: UW10-04

IN THE MATTER of an application by the Hunter River Sewage Collection and Treatment Corporation for an increase in its tariff of sewer rates and charges.

BEFORE THE COMMISSION

on Wednesday, the 27th day of October, 2010.

Maurice Rodgerson, Chair
John Broderick, Commissioner
Chester MacNeill, Commissioner

Order

WHEREAS the Hunter River Sewage Collection and Treatment Corporation (the "Utility"), by application filed on July 20, 2010, and as amended by email on October 15, 2010, 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 $462.00 per unit per year, to $708.00 per unit per year, effective November 1, 2010;

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

AND WHEREAS following the September 3rd, 2010 deadline, the Commission did not receive any written submissions in response to the notice;

AND WHEREAS subsequent to the Commission's public notice, a letter describing the rate proposal was distributed by the Utility directly to all ratepayers;

AND WHEREAS the Utility's letter prompted six customers to write to the Commission expressing concerns over the proposed changes;

AND WHEREAS the Commission has considered the submission of the Utility and supporting operating and financial data, as well as the comments received in response to the Utility's September 9, 2010 letter to ratepayers;

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

increased costs in recent years associated with the ongoing operation and maintenance of the central wastewater pollution treatment facility have resulted in overall increases in operating expenditures;

the Utility has incurred additional costs over the last few years related to the mandated requirement that only specialized personnel be engaged to oversee certain plant operations; and

the Utility's share of infrastructure costs related to plant upgrade work carried out in recent years impacts the Utility's revenue requirement;

AND WHEREAS the Commission gave consideration to the possibility of phasing in the proposed rate increase, however, rate impact analysis showed that this option would result in the deficit becoming too great for the Utility to recover over a reasonable amount of time;

AND WHEREAS the Commission considers that an annual sewer rate of $708.00 per unit for customers, effective with service provided on and after November 1, 2010, 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 Hunter River Sewage Collection and Treatment Corporation will be revoked and the Tariff appended to, and forming part of, this Order will be substituted therefore; and

2. the appended Tariff is approved and declared effective on November 1, 2010 and shall remain in effect until otherwise ordered by the Commission.

DATED at Charlottetown, Prince Edward Island, this 27th day of October, 2010.

BY THE COMMISSION:

Maurice Rodgerson, Chair

John Broderick, Commissioner

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.

NOTE: In accordance with IRAC's Records Retention and Disposition Schedule, the material contained in the official file regarding this matter will be retained by the Commission for a period of 5 years.

Approved: Island Regulatory and Appeals Commission
Effective: November 1, 2010
Order Authorizing Tariff: IRAC/UW47302/UW10-04

Hunter River Sewage
Collection and Treatment
Corporation

SEWER TARIFF

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

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: NOVEMBER 1, 2010

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 Hunter River Sewage Collection and Treatment Corporation.

Rate:

$708.00 per unit per annum in accordance with the appended Proportionate Sewer Charges.

Proportionate Sewer Charges

TYPE OF CUSTOMER

UNIT
VALUE

ANNUAL
SEWER
CHARGE

TYPE OF CUSTOMER

UNIT
VALUE

ANNUAL
SEWER
CHARGE

SINGLE-FAMILY DWELLING

1.00

$708.00
DOCTORS' & DENTISTS' OFFICES AND BEAUTY & BARBER SHOPS
     With Separate Service

1.00

$708.00

INDIVIDUAL APARTMENT
0.80

$566.40
     Combined With Other Service
0.50

$354.00

MOBILE HOME
0.70

$495.60
LAUNDROMAT WITH MACHINES USING OVER 30 GALLONS PER WASH
     For First Machine

3.00

$2,124.00

SENIOR CITIZENS HOME, Per Unit
0.60

$424.80
     For Second Machine
2.00

$1,416.00

     For Each Additional Machine
1.00

$708.00

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

1.00

$708.00
LAUNDROMAT WITH MACHINES USING 30 OR FEWER GALLONS PER WASH
     For First Machine

     For Each Additional Person
0.20

$141.60

2.00

$1,416.00

     For Second Machine
1.50

$1,062.00

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

$531.00

0.50

$354.00

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

$708.00

0.30

$212.40
     With Carwash
2.00

$1,416.00



TOURIST HOME
     For First Bathroom
1.00

$708.00
RESTAURANTS AND SNACK BARS
1.00

$708.00

     For Each Additional Bathroom or
     Washroom
0.30

$212.40
     For Each Ten Seats, an Additional
     Amount of
0.25

$177.00

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

0.50

$354.00

     With Laundry Facilities,
     Per Bed
0.75

$531.00

1.00

$708.00

     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

$708.00

0.25

$177.00

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

$708.00

     For First Washroom and Toilet
     Facility
1.00

$708.00

1.00

$708.00

     For Each Additional Washroom
     and Toilet Facility

0.50

$354.00

     For Each Additional Toilet or Urinal
0.50

$354.00