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Notice
NOTICE OF APPLICATION
APPLICATION NO. 1511623
CAMROSE COUNTY
WATER FRANCHISE AGREEMENT WITH CU WATER LIMITED
Take Notice that Camrose County (the County) filed an application (the Application) on May 7,
2007 with the Alberta Energy and Utilities Board (the EUB or Board) requesting approval to
enter into a Water Franchise Agreement (the Agreement) with CU Water Limited (CU Water).
Note that the EUB may continue to process the Application without further notice if no valid
objections are received on or before July 23, 2007.
Nature of the Application
On March 27, 2007 CU Water and the County entered into the Camrose County Water Supply
Line Agreement (CCWSL Agreement) in which CU Water agreed to construct, own and operate
a water supply line extending from the Highway 14 Water Supply System into the County to
supply treated water to the County. As a condition to the CCWSL Agreement, the County agreed
to grant CU Water the exclusive right to supply treated water to the County. The Agreement
would extend CU Water’s service area to include the areas in and around the Hamlets of Round
Hill and Kingman within the County. CU Water would have the exclusive rights to provide
treated water via the water line for 20 years. However, the County can still provide non-treated
water for farm operations and treated trucked water.
The source of the water to be provided to the County is through the Highway 14 Regional Water
Services Commission, which provides bulk, treated water. CU Water has designed trickle feed
distribution systems and therefore customers are required to meet certain provisions that are
necessary for the system. The construction costs for the water supply line and water distribution
system are to be funded through contributions from CU Water and the County, who has received
grant funding. Construction of the pipeline and distribution system for the County is expected to
be complete by the end of October 2007.
Potential customers in the franchise area have a choice to sign up to CU Water’s distribution
system at a cost, and should contact CU Water for more information.
The Agreement includes provisions for a franchise fee in lieu of municipal taxes for use of
municipal rights of way. The franchise fee will be set at 0 per cent of CU Water’s annual
revenues for the first ten years of the term. Thereafter, the franchise fee can be changed on an
annual basis with EUB approval, provided that the franchise fee does not exceed 5 per cent of
CU Water’s annual revenues. In determining the amount of the franchise fee the County has the
right to differentiate among various customer rate groups by setting a different percentage rate of
franchise fee for different customer rate groups.
Section 8.1 of the Agreement indicates that CU Water shall charge for the treated water supplied
to the consumers at such prices and rates as may be approved or fixed from time to time by the
EUB. It also states that such rates shall include any surcharge imposed by the Highway 14
Regional Water Services Commission, which surcharge is contemplated to be $0.15 per cubic
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metre of treated water supplied. The Board would like to point out that this $0.15 per cubic
metre proposed surcharge does not form part of CU Water’s currently Board approved rates. CU
Water has applied to the Board under Application Number 1515385 to recover this $0.15 per
cubic meter surcharge imposed by the Highway 14 Regional Water Services Commission.
Section 8.2 of the Agreement indicates that CU Water will supply water to the customers in
accordance with its Water Service Regulations as approved by the EUB.
Additional Information
Copies of Application No. 1511623 are available for viewing through the IAR Query link on the
Applications page of the EUB Web site www.EUB.ca or by clicking on the following link:
https://www3.eub.gov.ab.ca/eub/dds/iar_query/ApplicationAttachments.aspx?AppNumber=1511
623
To obtain additional information or a paper copy of the Application, contact the applicant at:
Camrose County
3755 - 43 Avenue
Camrose AB T4V 3S8
Attention: Steve Gerlitz, Chief Administrative Officer
Telephone: (780) 672-4446; Fax (780) 672-1008
For information about EUB procedures contact Amanda Brinker, Utilities Branch, at the number
listed below.
To File a Submission
Any party with concerns respecting the Application should submit a Statement of Intent to
Participate (SIP) letter setting out your name or organization name, address or legal land
description, telephone number and e-mail address (if available).
Please note that the SIP submission must contain:
•
a description of the nature of the party’s interest in the proceedings (i.e., how the party
will be affected by the Board’s decision); and
•
a statement describing the party’s eligibility for cost recovery in light of the “business
interest” rule contained in Section 55(2)(h.1) of the EUB Rules of Practice.
If you are represented by another party, please include the contact information for your
representative. If you are a group, provide a contact person for the group and give details on the
group members.
One copy of your SIP letter should be directed to the applicant using the contact information
above and one copy submitted to the EUB.
Pursuant to section 12 of the EUB Rules of Practice, all documents filed in respect of this
proceeding, including any submissions or other documents filed prior to the commencement of
the proceedings, must be placed on the public record unless otherwise ordered by the Board.
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Your SIP letter and any other documents you file will be accessible to the public and all other
participants in the proceedings through the EUB’s Web site. Please ensure that the document you
file is free of information that you do not want to appear on a public record.
Electronic copies of the SIP letters can be directed to:
E-mail:
EUB.Utl@eub.ca
Subject:
Application Number 1511623
Paper copies can be sent to:
Amanda Brinker, Utilities Branch
Alberta Energy and Utilities Board
10055 - 106 Street, 10th Floor
Edmonton, Alberta T5J 2Y2
Telephone: (780) 422-5211; Fax: (780) 427-6970; E-mail: amanda.brinker@eub.ca
The EUB may grant the Application without further process if no bona fide objections are filed
by persons or organizations considered by the EUB to be directly or adversely affected by the
proposal.
Issued at Calgary, Alberta on June 27, 2007.
ALBERTA ENERGY AND UTILITIES BOARD
Douglas A. Larder, Q.C., General Counsel