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Rate Increase Application - October 1, 2024

July 31, 2024

Alto Utilities is seeking a rate increase as of October 1, 2024.  Supporting documents can be viewed on Alto’s website under the news and notices tab (here). The rate increase application has three components:

  1. Inflationary Cost Adjustment since last rate increase (Tariff #8 - 2022)
  2. Increase in RRTF contributions (see Long-term Asset Management Plan - April 2024)
  3. Capital Fund Rider to fund future water treatment capital project (see Long-term Asset Management Plan - April 2024)

History

In December 2020, Alto’ Utilities’ local health authority provided 6 new operating permit guidelines. The last of these would require several steps and years to complete; Provide Long-term Plans for Source, Treatment and Distribution System Improvements. Since 2020, Alto has taken steps to comply with these conditions.

In 2022 Alto Utilities completed a Source Water Protection Plan (SWPP). The primary goal of the SWPP was to determine whether Alto Utilities’ source was at risk of contamination from pathogens. The SWPP concluded by rating Alto’s two wells as GARP (ground water at risk of pathogens) for viruses due to the proximity of the District of Lake Country’s sewage lift station and the cattle watering pond North of Alto’s wells.

In 2024 Alto completed a Long-Term Asset Management Plan (LAMP). The purpose of this plan was twofold; develop a model that could help Alto forecast and plan for future infrastructure costs and develop a rate structure that will support long-term infrastructure sustainability.

The final piece in this history is treatment. Alto Utilities’ Health Officer agreed with the recommendations from the 2022 SWPP report; that future treatment to protect against virus pathogens would be necessary. However, other factors including, water hardness, manganese, iron, and pH, complicate treatment options. While the LAMP examined Alto’s Rate structure and made recommendations for long-term infrastructure sustainability, it also developed a mechanism in the rate structure to fund new capital costs for future treatment and suggested some options for treatment. In 2024, Alto will send out a Request for Proposalfor a Treatment Plan that will determine how Alto will address IHA’s permit requirement to Provide Long-term Plans for Source, Treatment and Distribution System Improvements.

Alto Utilities recognizes that this rate application represents a significant increase in water charges to its customers, but it is important to note that the bulk of the next three rate increases will be set aside for future infrastructure upgrades and future water treatment. Utilities around the province are uniformly encountering increased maintenance, infrastructure, and capital costs that stretch budgets. In addition, private water utilities face the unique challenge of planning for these future infrastructure and capital costs without being able to access government funding. Alto Utilities endeavors to walk the difficult line of planning for the future while being considerate of customer’s present financial challenges as has been outlined in this rate increase proposal.