Original language

English

Country
Canada
Date of text
Status
Decided
Type of court
Others
Sources
Court name
Nova Scotia Utility and Review Board
Reference number
2010 NSUARB 244
Free tags
Water
Justice(s)
Gurnham, Dhillon and Doehler.
Abstract
The Halifax Regional Water Commission is unique among Canadian utilities in that it provides water, wastewater and stormwater services within an integrated utility structure which is subject to regulatory oversight of all three services. Prior to 2007, the wastewater and stormwater operations of HRM, and its predecessor municipalities, were operated as municipal services. In 2006, it was becoming apparent that the wastewater and stormwater services of HRM would require substantial infrastructure improvements in the coming years. This problem was compounded by more stringent regulations in respect to wastewater discharge. There was also an ongoing major capital infrastructure program to improve the water quality in Halifax Harbour, known as the Halifax Harbour Solutions Project ("HHSP"). This project consisted of three large wastewater treatment facilities located around Halifax Harbour together with the elimination of a number of private outfalls which discharged untreated sewage directly into the harbour. HRM Council, in consultation with Halifax Water, undertook a review which considered all of the options available to provide the most efficient and effective wastewater and stormwater services in the municipality. That process culminated with a motion by HRM to have its wastewater and stormwater services operated by Halifax Water and a coincident motion from Halifax Water to accept those services. In 2006, Halifax Water applied for amendments to its schedule of rates and charges in regard to its water service. The NSUARB decision in respect of that Application is significant because it was the first time the Board explored the use of cost of service principles commonly applied in the regulation of electrical and natural gas utilities to determine the rates charged by a water utility. On December 17, 2010, the Nova Scotia Utility and Review Board (NSUARB)granted an increase in rates for Halifax Water customers, effective January 1, 2011. These rate increases are a necessary first step to address a problem that has been decades in the making, and position the utility to better protect the environment in the future. The three main drivers for the increased need for funding are: the requirement to upgrade aging wastewater infrastructure; a new federal wastewater strategy – the Canadian Council of the Ministers of the Environment (CCME) Municipal Wastewater Effluent Strategy – is bringing new and stricter environmental regulations into effect, which will have significant financial and operational implications for owners of all municipal wastewater systems across Canada; and increased operating costs including incremental costs to operate the three new Harbour Solutions Project wastewater treatment facilities (WWTFs) which are now fully operational.