By Michael Bennett
Local Journalism Initiative
The Ridgetown Independent
At its January meeting, the Chatham-Kent Public Utilities Commission approved recommendations for an increase in water and wastewater rates for 2025.
The rate increase was passed unanimously without discussion.
The PUC approved financial and business plans at the Dec. 19 online meeting to deal with capital costs forecast to exceed $1 billion over the next decade.
The PUC learned in October that 2025-34 water capital costs, adjusted for inflation, are estimated at about $870 million, with wastewater capital costs estimated at $305 million, according to a Watson and Associates’ rates study.
Darren Galbraith, PUC general manager, said that the total increase is approximately $9 per month for an average household of three or four people using 17 cubic metres of water and wastewater.
The increase raises the average urban water customer’s monthly bill to $55.55 for this year, up from $604.64 to $658.19, while an average wastewater customer will see their bill rise $55.17 for the year, from $629.72 to $684.89.
Customers using both the water and wastewater services will see an increase of $110.72 for 2025.
Over the 10-year capital plan covering 2025-34, the average water bill could rise from $604.64 to $1,156.71, and wastewater could increase from $629.72 to $1,199.37.
“The increases are necessary to ensure sustainability now and in the future,” Galbraith said during his presentation. “They cover increases in costs for operation and maintenance for treatment and delivery of water and wastewater, as well as finance lifecycle and capital projects, as well as debt financing.”
Galbraith said these figures could change in either direction based on a number of factors.
“Factors such as construction costs, facility needs, funding and grants from upper governments may lead to a change in the rates from those in the current rate study,” Galbraith said. “Even though the rate study projects the rates for the next 10 years, the rate study will be reviewed and renewed in approximately five years.”
