City seeking membership for Utility Rate Review Committee

Published Dec. 12, 2017

2018 marks the beginning of the City of Penticton’s Utility Rate Review. With the goal of developing a sustainable rate structure, the review will examine current and future charges for electricity, sanitary sewer and both treated and agricultural irrigation water.

To ensure a variety of perspectives and points of view are gathered over the course of the review process, the City is seeking the participation of four community members who are interested and available to join staff on a Utility Rate Review Committee. Of particular interest to the City are individuals representing the interests of residential, commercial, industrial and agricultural utility users. Individuals with backgrounds and experience in accounting and finance are also sought.

The project is scheduled to span from January 23, 2018 to July 17, 2018 and will involve about four meetings, plus participation at public engagement sessions. Key focus areas of the committee will include:

1. The administration / overhead fee charged to each utility.
2. The Electrical Utility Dividend.
3. Adjustments to the Sanitary Sewer Rate Structure.
4. Decoupling of the FortisBC power purchase increases from City controlled price increases.
5. Revenue requirements to meet:
   1. Electricity purchase costs;
   2. Operating and maintenance costs;
   3. Capital costs for new capital additions;
   4. Average Annual Lifecycle Investment for asset management purposes;
   5. Administration / Overhead costs;
   6. Debt servicing costs;
   7. Transfers to reserves; and
   8. The Electrical Utility dividend.
6. A Cost of Service analysis to ensure that each customer class in each of the four utilities is paying the correct amount.
7. Development of rate structure options.
8. Utility expense comparisons.
9. Public engagement.
10. Finalizing a rate structure.

Local community members interested in being considered for this committee are asked to download and submit the following form by January 15, 2018.