Alberta Central East (ACE) Water Corporation Connection Policy and Water Charges July 2012 Central East (ACE) Water Corporation Connection Policy and Water September 2012 This report is prepared for the sole use of Alberta Central East Water Corporation. No representations of any kind are made by Urban Systems Ltd. or its employees to any party with whom Urban Systems Ltd. does not have a contract. 1 Alberta Central East Water Corporation Connection Policy And Water Charges TABLE OF CONTENTS 1.0 OBJECTIVE .......................................................................................................................................... 1 2.0 WHO IS ALBERTA CENTRAL EAST (ACE) WATER CORPORATION? .......................................... 2 2.1 GUIDING PRINCIPLES .................................................................................................................... 2 3.0 ALBERTA CENTRAL EAST (ACE) REGIONAL WATER SYSTEM ................................................... 4 3.1 HOW DOES THE TRANSMISSION SYSTEM WORK? ............................................................................. 4 3.2 WATER RESERVOIR AND STORAGE IREMENTS.................................................................................. 4 3.3 POINT OF DELIVERY ..................................................................................................................... 4 3.4 LEVEL OF SERVICE ....................................................................................................................... 5 4.0 WHO ARE THE CUSTOMERS? .......................................................................................................... 6 5.0 CONNECTION TO THE ACE REGIONAL WATER SYSTEM ............................................................. 7 5.1 CONNECTION TYPES .................................................................................................................... 7 5.2 FUTURE CONNECTIONS................................................................................................................. 9 5.2.1 Application Process............................................................................................................. 10 5.2.2 Engineering Design and Cost Estimate .............................................................................. 10 5.2.3 ConstructioStage................................................................................................................. 10 6.0 OPERATION AND MAINTENANCE .................................................................................................. 12 6.1 WHO IS RESPONSIBLE? .............................................................................................................. 12 6.2 METERING AND BILLING .............................................................................................................. 12 7.0 COST OF SERVICE, WATER RATE AND CONNECTION CHARGES............................................. 14 7.1 COST OF SERVICE................................................................................................................................... 14 7.1.1 Capital Costs .................................................................................................................................... 14 7.1.2 Replacement Costs .......................................................................................................................... 14 7.1.3 Operation and Maintenance Expenses ............................................................................................ 14 7.1.4 Management Fees ........................................................................................................................... 14 7.1.5 Board of Directors Expenses ........................................................................................................... 15 7.1.6 Purchasing Cost ............................................................................................................................... 15 7.2 UNIFORMWATER RATE STRUCTURE .......................................................................................................... 15 7.2.1 Water charges per m3 of water ......................................................................................................... 15 7.2.2 Fixed Charges ................................................................................................................................. 16 2 Alberta Central East Water Corporation Connection Policy And Water Charges 7.2.3 Rate of Return ................................................................................................................................. 16 7.2.4 Replacement Charges ..................................................................................................................... 16 7.2.5 Work in Progress ............................................................................................................................. 16 7.2.6 Charges to Account for Water Losses ............................................................................................. 16 7.3 CONNECTION CHARGES ........................................................................................................................... 17 .. 7.4 DISCONNECTION CHARGES ...................................................................................................................... 17 7.4.1 Temporary Disconnection ................................................................................................................ 17 7.5 RECONNECTION CHARGES ....................................................................................................................... 17 7.6 RATE STRUCTURE REVIEW PERIOD ........................................................................................................... 17 APPENDICES Appendix A – Figure A: Service Area Appendix B – Application Form for Future Connections Appendix C – Schematic Drawings for Direct Connections to Main - Single Users Appendix D – List of Approved Vendors Appendix E – List of Approved Contractors Appendix F – Allocation of Fixed Charges and Board of Directors Fees – Usage Charge – Other Charges 3 Alberta Central East Water Corporation Connection Policy And Water Charges 1.0 OBJECTIVE This document is prepared to assist the Alberta Central East (ACE) Water Corporation in providing services to their customers when connecting to the Alberta Central East (ACE) regional water system. It defines the ACE Water Corporation Guiding Principles for operating and managing the Corporation and the regional water system and will answer questions such as: – How does a transmission line work? – Who can connect? – What are the different Connection Types? – What are the requirements for connecting to ACE regional water system? – Who will maintain and manage the connections? – How much does it cost to connect? – Who will pay? – How will the billing work? It categorizes the customers and the connection types and defines the level of service for each type. It also sets parameters for the ACE Water Rate Structure and provides an assessment of the costs associated with the provision of service. This document also outlines the process for future connection and defines the administration, engineering and operation requirements. 4 Alberta Central East Water Corporation Connection Policy And Water Charges 2.0 WHO IS ALBERTA CENTRAL EAST (ACE) WATER CORPORATION? ACE Water Corporation is a body corporate, incorporated by its shareholders pursuant to the laws of the Province of Alberta, to effectively manage and operate the ACE regional water system. The shareholders are: County of Minburn No.27 County of Two Hills No.21 County of Vermilion River Town of Two Hills Town of Vermilion Village of Dewberry Village of Innisfree Village of Kitscoty Village of Mannville Village of Marwayne Village of Myrnam Village of Paradise Valley Village of Willingdon As per the Unanimous Shareholder Agreement, ACE Water Corporation is a municipality owned corporation. The member municipalities have received the necessary consents as required by the Municipal Government Act to be shareholders of ACE Water Corporation. The ownership of the corporation is proportionate to the shareholders’ population and allocated capacity. The details of classes and numbers of shares are presented in the Unanimous Shareholder Agreement. 2.1 Guiding Principles The guiding principles of ACE Water Corporation are: 1. Shareholders are committed to providing safe, clean and reliable potable water to their residents: The ACE Regional Water System is partially funded by the Province of Alberta as part of the Alberta Water/Wastewater Municipal Partnership – Regional Initiatives. This program is prepared in accordance to Alberta’s “Water for Life” strategy. As such, ACE Water Corporation has adopted the main goals of Water for Life Strategy. Through regional partnership and initiatives, the shareholders are committed to provide safe, reliable and quality potable water to their residents to support a sustainable economy in the region. 5 Alberta Central East Water Corporation Connection Policy And Water Charges 2. Shareholders are in it together: Regardless of the geographic location of the transmission system and its facilities, the shareholders own the entire system together proportionate to their population. They are responsible to effectively manage and operate the corporation and maintain the integrity of the regional system. Any decision regarding the ACE regional water system