Other Applications
Other Applications
There is a variety of other applications reviewed by that the Public Utilities Board (Board). Other applications could include the following:
Initial Interim Rates
Each Municipality, having received authority from the Provincial Government to construct a new water or wastewater system, must keep in mind the requirement that commodity rates must be approved by the Board. Municipalities are urged to submit necessary information to the Board as early as possible, so rate may be approved, if possible, before the customers are connected to the system.
Where Board staff is aware, they will attempt to keep in touch with such Municipalities to obtain such information and rate By-law. However, it is a municipal responsibility to notify the Board. If it appears that full information may not be available before customers are connected, the Board may consider authorization of interim rates, subject to a hearing to authorize regular rates to be held within a stated period.
Note: In some cases, where rates are not set until some customers have been using water for some month, resulting in shortfalls can be recovered through retroactive billing, if approved by the Board.
Debenture Surcharge
Annual debenture costs (loan principal repayment plus interest), incurred to repay the debenture debt of the utility, are an essential consideration for rate determination. Debenture revenue from taxation must be included in the calculation of rates.
The interest component of the annual debenture repayment is considered an expense for rate setting purposes. The principal repayment component is not. However, the assets acquired through the debenture will have an annual amortization expense. These amortization expenses are driven by PSAB standards.
Whether or not debenture servicing costs are better born through rates or taxes will vary with the circumstances. This determination should be made on the basis of equity and fairness where customers are being assessed their fair share of costs.
Occasionally, debentures are recovered through a surcharge which must be approved by the Board.
Development Charges
Review and Vary / Appeal
If the utility objects to the Board’s decisions, the Applicant has 30 days from the date of the Order to file a request to the Board to review and vary the Order. Otherwise, the utility is required by law to implement the directives contained in the Order.
Lagoon Tipping Fees only
The information required for these applications will vary but, at minimum, should include:
- A detailed letter of explanation for the request
- A completed PUB Schedule 9 using the most current year’s Audited Financial Statements
- Copies of the most current year’s Audited Financial Statements and/or whether it is located on the MMO website.
- Last Board Order number
- The current rate By-law
- Council Resolution
The application/submission could also include:
- An explanation of the calculations (how did you come up with that number?)
- Any supporting study completed by a Consultant, etc. or an Engineering Assessment
- The outcome of any public consultations held