Thursday, January 25, 2007

Brace yourself: cost of water going up

By Vernon Daily Courier staff Thursday, January 25, 2007 http://www.dailycourier.ca/article_910.php
One of last year’s most contentious issues may pass with barely an argument this year.The issue of increasing water rates was a highly divisive issue in 2006 , but one of the biggest opponents to rate hikes, Swan Lake/North BX director Cliff Kanester is planning a one-year truce.“I’m willing to go along with the rate increase this year,” Kanester said. “After that we will have to find some other way to do this.”Kanester said this year is the last time he will go along with such a large rate increase. He said the current structure is unfair to rural customers and fails to encourage water conservation.“Right now if you have the ability to pay the bucks you can use as much water as you want,” he said. “I’ve been fighting this battle for over two years.”

Coun. Barry Beardsell said the increases should not come as a surprise since they were agreed upon at the beginning of the Master Water Plan. He said rates will continue to increase steadily in the future.“I voted against it a couple of years back because I thought it was the wrong direction to go,” he said. “The only relief that could ever come now is if there are major and I mean major government grants.” Greater Vernon Water is proposing a rate increase of 5.5 per cent for industrial, commercial and residential customers. If approved the water rate will jump from 72 cents to 76 cents per cubic metre and the flat rate will rise to $113 per year from $102.20.

For the average residential customer who uses 320 cubic metres of water per year, they would pay $356.20 in 2007 – $23.60 more than they would have paid last year.Water manager Al Cotsworth said the increases are necessary to pay for the capital improvements in the Master Water Plan. He said that several of the projects have come in under budget which may help ease rate increases in future years.“That’s what it really comes down to, the utility needs enough money to finish these projects,” he said. “So far the budget is really living up to the predictions made in 2002.”The next major project in the water plan is the Duteau Creek Treatment Plant. The equipment for the plant was purchased for $400,000 less than budgeted.
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Water rates are going up or down depending on how much water you use. A new City of Kelowna water schedule given first reading at council on Monday will see water rates adjusted closer to the actual amount of water different categories of water users consume. “Low to moderate users could see a decrease in their bill while higher users could see an increase,” said Don Degen, water and drainage manager.
Don Quixote Note: This has marked similiarilities to a pricing system that I, along with many others, have advocated to Al Cotsworth at the GVSC for years. It is called the inclined block method. (The more you use the more you pay). Perhaps it is time to consider this in the Greater Vernon Region also !) This is a reply that I received from a known expert on water via e-mail last year: (Mr. E. Jackson)

"You are right on with the inclining block rate and should know that early in the water metering program that I instituted in 1992, we went with an inclining block rate structure but for some unknown reason (political??) it was scrapped in favor of the current rate of a small flat fee and a constant unit rate structure. It is well understood that an incling block rate is the way to go as far as fairness and a conservation program. Why not hit the large users who are usually the wasters, with the highest rate? "

This is the Vernon Rates originallly in 1994:
In 1994 Vernon adopted flat and increasing block rate pricing structures. The prices, listed below, are designed to reward users for efficient use. As use increases, so too do water rates:
(a) up to 40 m3/quarter $33
(b) 41 — 300 m3/quarter $0.34/m3
(c) greater than 300 m3/quarter $0.56/m3

1 comment:

Anonymous said...

Greater vernon could and should use inclining rates but Field and Kannester would go ballistic trying to protect the wealthy who are not agricultural but own several acres-their agenda again