Balmoral residents will see a jump in their utility rates after the Public Utilities Board approved an increase effective Jan. 1, 2025.
The board approved an increase in the quarterly service charge to $22.50 from $15.95. The cost per cubic metre of water jumps to $3.50 from $1.05, while the rate for per cubic metre of wastewater jumps to $4.25 from $1.90.
The minimum quarterly charge based on 15 cubic metres will now be $138.75, up from $60.20.
In addition, the disconnection and reconnection fee will increase to $100 from $50, while the hydrant rental charge will increase to $200 from $150.
As of 2023, the Balmoral water and wastewater utility served about 140 customers. It’s been more than a decade since rates have increased, since the last rate went into effect on Jan. 1, 2014. Since then, the RM has incurred substantial increases in operating costs.
Deficits were last approved in the amounts of $42,547 for 2019, $19,648 for 2020 and $84,902 for 2021 for a total three-year actual operating deficit of $147,097, to be recovered from the accumulated surplus fund.
The water source for Balmoral’s public water system comes from a confined aquifer and is treated using reverse osmosis. The RM of Rockwood owns and operates the utility, which serves both Balmoral and Gunton.
The wastewater system uses gravity flow with one lift station and two pumps that direct it to the Balmoral sewage treatment lagoon.
In October 2023, the RM of Rockwood applied to the Public Utilities Board for revised water and wastewater rates. On Dec. 20, 2023, the application was accepted into the queue.
Members of the public had the chance to direct questions or comments to the Public Utilities Board or the RM of Rockwood about these proposed rate increases in January 2024, but there were no responses to the public notice of application.
The Public Utilities Board denied the RM’s request for retroactive rates effective Jan. 1, 2023, and Jan. 1, 2024. Instead, the board approved the proposed Year 3 rates, while also directing the RM to review the utility rates and file a report with the board. The RM also needs to apply for revised rates again by July 1, 2025.
“The RM of Rockwood submitted the rate study to the PUB in 2023 with rates up to and including 2025. The PUB sent the approval of the rates on Jan. 15, 2025,” said Teresa Taplin, utility administrator and safety co-ordinator for the RM of Rockwood.
“The RM of Rockwood will be submitting another rate study to the PUB on or before July 1, 2025, and noting the delay in approval from the PUB, this rate study will include rates to 2028. The 2025 rates will be in effect until another rate study has been approved by the Public Utilities Board.”
With the approved new rates, Taplin said the estimated quarterly increase for an average household would be $98.34.
According to a report from the Public Utilities Board, the rates requested by the RM weren’t enough to operate the utility without a deficit.
“The Board is concerned the RM has requested rates that are insufficient,” the report states. “The Board’s responsibility is to balance the sustainability of the Utility with the interests of ratepayers.”
The Public Utilities Board noted that the utility would likely incur a significant operating deficit without a rate increase for 2025. As a result, they approved the requested 2025 rates on a one-time basis in an effort to mitigate the forecasted deficit.
The report also noted that the duration between rate reviews was too long.
“Regular rate reviews submitted every three years, as per the Board’s Guidelines, protect the financial position of the Utility and may reduce the need for significant rate increase in one year. In this case, the deficits incurred by the Utility between 2015 and 2023 may have been reduced or avoided,” states the report.
“It is the Utility’s responsibility to review rates and ensure rates are adequate to fully recover the cost of service being provided to its ratepayers. Ratepayers are generally more tolerant of regular, smaller increases. The RM needs to be much more diligent in conducting regular reviews of its revenue requirements.”
The full Public Utilities Board report is posted on the RM of Rockwood’s website at www.rockwood.ca.
