The price of water and wastewater services is not regulated in Ontario. Most of Ontario’s water and wastewater services are provided by cities, towns and municipalities. These organizations establish water and wastewater rates to recover their costs to provide the services.
To ensure that the resort community’s water and wastewater services are both competitive and market based, Calabogie Utilities has committed to establishing rates based on North American utility standards.
Rates are established based on the Water and Wastewater Utilities’ actual “cost of service”, which includes:
- The costs to operate, monitor, maintain & repair the water & wastewater systems
- The accumulation of a reserve fund and the posting of a performance bond or alternate security to secure the Utilities’ obligations under the Municipal Responsibility Agreement
- A reasonable return on the Utilities’ capital cost of the systems, net of depreciation
The Reasonable Return is the return that is sufficient to maintain the Utilities financial integrity and enable them to attract capital on reasonable terms. It is never less than the Ontario Energy Board’s allowed Weighted Average Cost of Capital plus 250 basis points.
The 2020 combined water and wastewater rate is a flat $155.00 a month, plus HST.
Calabogie Peaks Resort is a customer of the systems and, like all other customers, pays for it’s pro rata use of the systems as measured by sub meter(s).
Beginning in 2021, the monthly water rate will reflect each connected customer’s volumetric use of the system which will be measured by a sub metre. This is a common structure that most municipal utilities use to encourage conservation.