Inverness cleared to develop wellfield

Project expected to cost $750,000

The provincial regulator has approved a request by the Inverness water utility to develop a wellfield for the Inverness water supply at a cost of about $750,000.

In a letter dated July 31, the Nova Scotia Utility and Review Board notes that the application states the project will increase water supply capabilities to address current shortfalls, but won’t meet the ongoing needs of the growing community.

The utility had also noted “there are no planned projects to meet future capacity needs at this time, but that the system will be closely monitored to determine when any expansion is necessary.”

The utility proposed funding the project with $250,000 from its depreciation fund and $500,000 in external funding through the gas tax reserve.

The depreciation fund balance as of March 31 was $1.22 million and the anticipated balance at the end of the current fiscal year is about $745,000.

Any cost overruns that might occur would also be funded through the gas tax reserve.

The board heard that the need for the Inverness project was not known at the time of the most recent rate application.

In its decision letter, the board says the board noted that the Inverness project will be undertaken in place of the Port Hastings well, which was included in the rate study at a cost of $600,000.

“In response to Board Staff (information requests), the Utility reassured the Board that the funding and any increase in operating expenses associated with this project can be absorbed within the current rate structure,” the UARB’s decision letter states.