The RM of Dauphin is requesting a rate increase for their rural water system.
A rate study is mandated by the Public Utilities Board to make sure the system is self-sufficient.
Chief Administrative Officer Nicole Chychota explains why they are adjusting the rates higher.
“What happened when they looked at what we had for the past two years was that for the past two years we had been incurring deficits because there was not a lot of water being used by the ratepayers. So when that happens the rates have to be adjusted to make sure we can cover the deficit that was incurred previously and make sure that we don’t have another one in the future.”
The Utility incurred an audited deficit of $1,602 in 2016, an unaudited deficit $143,455 in 2017 and anticipates a deficit for this year.
The initial proposed water rates calculated by the RM were based on a projected average quarterly water consumption of 90.92 cubic meters or 20,000 gallons per customer. The actual average quarterly water consumption from April 2017 to March 2018 was 26.36 cubic meters or 5,800 gallons per customer.
She says the board requires the utility to be financially self-efficient.
“The utility system in the RM of Dauphin is fairly small, small number of ratepayers I suppose, we have a large area that is being serviced. It’s only about 206 customers that are going to be set up after our phase two is completed here this fall.”
“So what happens is that when we first set it up the Water Services Boars, are the experts, who helped determine what the water rates are going to be based on what they expect would be normal water consumption. So over the last two years, they found that the water usage per household has just been a lot less than what was anticipated, which is why we incurred the deficit.”
The current rates are set at a minimum quarterly charge of $76.25 and they are requesting a minimum quarterly charge of $123.05.
Chychota says, for the most part, the quarterly minimum went up by about 50 dollars and that most customers will be minimally impacted.
