Decision 25911-D01-2020

The City Of

Water Supply Agreement with Foothills County

November 17, 2020

Alberta Utilities Commission Decision 25911-D01-2020 The City Of Calgary Water Supply Agreement with Foothills County Proceeding 25911

November 17, 2020

Published by the: Utilities Commission Eau Claire Tower 1400, 600 Third Avenue S.W. Calgary, Alberta T2P 0G5

Telephone: 310-4AUC (310-4282 in Alberta) 1-833-511-4AUC (1-833-511-4282 outside Alberta) Email: [email protected] Website: www.auc.ab.ca

The Commission may, within 30 days of the date of this decision and without notice, correct typographical, spelling and calculation errors and other similar types of errors and post the corrected decision on its website.

Decision 25911-D01-2020 (November 17, 2020) i

Alberta Utilities Commission Calgary, Alberta

The City Of Calgary Decision 25911-D01-2020 Water Supply Agreement with Foothills County Proceeding 25911

1 Introduction

1. The Alberta Utilities Commission received an application on September 30, 2020, requesting approval of a potable water supply agreement (as contained in a master servicing agreement) between The City of Calgary and Foothills County for a term of greater than five years pursuant to Section 30(1) of the Municipal Government Act.

2. The Commission issued notice of the application on October 1, 2020. The notice of application was also published in the Western Wheel and Times. Interested parties were to register their concerns by October 23, 2020. As no submissions were received, the Commission has reviewed and considered this application without further process.

2 Discussion and findings

3. Calgary provides both potable water and sanitary sewer servicing to Foothills. The previous service agreement between these parties expired and they have agreed to enter into a new agreement for these services. The new master servicing agreement (the service agreement), attached as Appendix 2, is for a term of 20 years and was negotiated between Calgary and a number of municipalities in the Calgary region including Foothills. Both Calgary and Foothills have been authorized by their respective councils to enter into the service agreement.

4. In the application, Calgary declared that:

a) The supply of potable water committed to under the Water Supply Agreement is necessary and proper for the public convenience and properly conserves the public interest.

b) The provision of potable water to Foothills, under the provisions of the Water Supply Agreement is reasonable for the residents of The City by recovering the full costs of service, and benefits the customers of Foothills by providing for cost effective and secure source of potable water.

c) The City discussed the Water Supply Agreement with The City’s Council and the Calgary City Council understands the reasons for the same and is in agreement with them.

d) Foothills discussed the Water Supply Agreement with the Council of Foothills and Foothills Council understands the reason for the same and is in agreement with them.1

1 Exhibit 25911-X0004, AUC cover letter AUC 25911, pages 1-2.

Decision 25911-D01-2020 (November 17, 2020) 1 Water Supply Agreement with Foothills County The City Of Calgary

5. Under Section 30(1) of the Municipal Government Act:

If a council proposes to make an agreement to supply water, steam or fuel to a public utility for a period that, with rights of renewal, could exceed 5 years, the agreement must be approved by the Alberta Utilities Commission before it is made.

6. As Section 30(1) of the Municipal Government Act expressly mentions water, but does not reference wastewater, the Commission’s jurisdiction is limited to aspects of the service agreement that pertain to water services. Accordingly, the Commission’s findings in this decision relate only to the supply of potable water under the service agreement. No findings are made in this decision with respect to wastewater.

7. Schedule G of the service agreement provides, among other things, that the usage rates and fees for water services will be determined on the basis of guiding principles approved by Calgary City Council, including a cost of service basis. Schedule G of the service agreement also provides that the principles and practices used to determine usage rates and fees may be changed by way of amendments to Schedule G or by the findings or directives of the Commission pursuant to its decisions and orders.2

8. Based on its review of the service agreement, and considering the declaration of Calgary quoted in paragraph 4 above, the Commission is satisfied that the service agreement between Calgary and Foothills, as it relates to the supply of potable water, is necessary and proper for public convenience and properly serves the public interest. On that basis and noting the absence of any objection to the application pursuant to Section 30(1) of the Municipal Government Act, the Commission hereby approves the potable water supply agreement, as filed.

3 Decision

9. Pursuant to Section 30(1) of the Municipal Government Act, the Commission hereby approves the potable water supply agreement, as filed.

Dated on November 17, 2020.

Alberta Utilities Commission

(original signed by)

Carolyn Hutniak Commission Member

2 Exhibit 25911-X0001, pages 69-70.

Decision 25911-D01-2020 (November 17, 2020) 2 Water Supply Agreement with Foothills County The City Of Calgary

Appendix 1 – Proceeding participants

Name of organization (abbreviation) Company name of counsel or representative

The City of Calgary (Calgary)

Alberta Utilities Commission

Commission panel C. Hutniak, Commission Member

Commission staff C. Arnot C. Burt O. Saenz

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Appendix 2 – Water Supply Agreement between The City of Calgary and Foothills County

(return to text)

Appendix 2 - Calgary and Foothills service agreement (consists of 82 pages)

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