Comparative Water Rates

There was a notice in the August 17th, 2010 Pennywise from BC Hydro. The backstory to this notice is that BC Hydro has owned and operated the water system at West Robson (near Castlegar) for many years now, basically since the Keenlyside dam was built back in the 1960s. The operator (BC Hydro) is applying for approval for a water rates structure effective January 1st, 2010.

What's interesting at first glance is the rate structure they are asking for. The Residential Single Family annual rate will be $915/year. Reading some of the background information, I learned that $200 of that annual rate will be placed in a reserve fund for future repairs and replacements to the water system. Their system supplies somewhere in the neighbourhood of 50 residences with the potential to supply more. They put a replacement value on their system of about $4.5 million.

The Society just received a letter from the Water Comptroller in Victoria reminding all water system operators that they need to be charging rates that will allow them to accumulate sufficient funds to handle future replacement costs. Looks like free water has disappeared in one more place. Certainly a sign of things to come.