Rates for customers of the Pembina Valley Water Co-op (PVWC) could be going up next year. The Co-op is asking the Public Utilities Board (PUB) to approve new water rates for the next 5 years, starting in 2023.
"As part of our normal process, about every five years, we will do a rate study which is one of the requirements...and we talked to our customers and understand what their water needs are going to be over the next five years," explained PVWC CEO, Greg Archibald, who said this study was the basis for establishing the new rate structure.
According to Archibald, current water costs for an average citizen are less than $1 per day per person. The proposed new rates will add a cost of $0.02 to $0.04 per day per person/year.
"So, the dollar per day per person is pretty good value in terms of the cost of water, and the cost increases are not overly significant."
As for what is the main justification for the proposed new rates, Archibald says it comes down to inflationary pressures. For example, from 2021 to 2022 the PVWC'S chemical costs are up 29%, hydro is up 3.6% and gas is up 20.5%. Cost escalation on current capital projects due to inflation also require some funding, added Archibald.
"The inflation that everybody is experiencing, we too are experiencing at the water co-op. The increases are just to kind of hold our own," he said, noting new major capital work has not been included in the new rates. "We're just putting forward a proposal that would give us a reasonable amount of rates to be able to pay the bills," he added, noting the PVWC is a non-profit organization.
Archibald explained, water processing costs to produce a liter of water for the PVWC's 14 member municipalities are as follows: Loan repayment and interest charges 35%, employee wages 31%, and operating costs for chemicals, hydro, gas and maintenance 34%.
The public will be given an opportunity to submit comments to the PUB regarding the proposed new rates.