Hydro cost sparks water rate increase

Increasing electricity and maintenance expenses are driving up the cost of water and sewer treatment, leading to a two per cent increase in Niagara Region’s wholesale rates.

“Consistent with the last few years one of the most significant pressures is the increase in hydro costs,” said Niagara’s deputy treasurer Helen Chamberlain while discussing the 2018 water and wastewater budget during last Thursday night’s budget meeting.

Regional council will consider approval of the $ 116.7- million water and wastewater budget on Nov. 16.

The two per cent overall increase will add $ 933,014 to water treatment funding, and $ 1,298,924 more for wastewater, compared to 2017.

Chamberlain said individual municipalities will determine how the Region’s rate increases impact the water bills sent out to Niagara ratepayers.

She said the retail rate is “obviously going to have a very different impact than what we distribute to local municipalities.”

“You’re going to see very different outcomes in terms of how this translates to the customer,” she said.

Chamberlain said despite initiatives designed to reduce energy usage, Niagara’s water and wastewater treatment plant electric bills are expected to cost about $ 1 million next year.

Public works commissioner Ron Tripp later added that the Region is spending $ 600,000 annually in energy- efficiency programs.

“It’s really not savings, it’s offsetting increases,” he said.

Tripp said investing in new highefficiency equipment will also help reduce energy costs.

“One of our biggest energy drivers are our pumps, and the replacement of those pumps will ultimately take place through infrastructure renewal,” Tripp said.

Fort Erie Coun. Sandy Annunziata pointed out that the increased electricity costs the Region is paying are entirely the result of increasing electricity charges, rather than increased power usage.

“The taxpayer is going to get hit twice now,” Annunziata said.

“They’re getting dinged with respect to the hydro bill they get every month, and now they’re getting dinged on their water bill, essentially, because this results in an increase of $ 1 million.”

Chamberlain said repair and maintenance for facilities is also having an impact on next year’s budget.

After a few years of postponing those expenses, she said the Region is “trying to get back to a more appropriate level in that area.”

The budget includes a $ 26- million increase in infrastructure investment, above the five- year average, “allowing us to impact some of our infrastructure backlog and the needs of the asset management plan.”

Meanwhile, stormwater infiltration continues to plague Niagara’s infrastructure.

“The years where projected flows exceeded our actual, those are the years where we’ve experienced revenue shortfalls and they can be significant,” Chamberlain said.

“Every one per cent decline in the revenue relates in a $ 300,000 revenue loss.”

The budget also includes funding for 7.5 full- time equivalent staff, including project managers.