This is the exact embedded text of the captured official document.
Snapshot 359d130da4df · verified 2026-06-09 ·
original document ·
archived snapshot ·
unofficial consolidation, the official version is held by the municipal clerk.
Room 400 - 330 Portage Avenue
Winnipeg, MB R3C 0C4
www.pubmanitoba.ca
330, avenue Portage, pièce 400
Winnipeg (Manitoba) Canada R3C 0C4
www.pubmanitoba.ca
Order No. 87/25
GRANDVIEW MUNICIPALITY
SUGARLOAF WATER UTILITY
REVISED WATER RATES EFFECTIVE JULY 1, 2025
SIMPLIFIED RATE APPLICATION
June 13, 2025
BEFORE: Kim Sharman, Panel Chair
Shawn McCutcheon, Panel Member
Order No. 87/25
June 13, 2025
Page 2 of 11
Table of Contents
1.0
Executive Summary .............................................................................................. 3
2.0
Background .......................................................................................................... 4
3.0
Board Methodology ............................................................................................... 4
Simplified Rate Application Process ................................................................................ 4
Review Process .............................................................................................................. 6
Working Capital ............................................................................................................... 6
4.0
Application ............................................................................................................ 7
Working Capital Surplus .................................................................................................. 8
5.0
Board Findings...................................................................................................... 9
6.0
IT IS THEREFORE ORDERED THAT: ............................................................... 10
Order No. 87/25
June 13, 2025
Page 3 of 11
1.0
Executive Summary
By this Order, the Public Utilities Board grants approval of revised water rates effective
July 1, 2025, for the Grandview Municipality (Municipality), Sugarloaf Water Utility (Utility).
The approved rates are shown below:
Quarterly Service Charge
32.27
$
Water (per 1.000 gallons)
16.08
$
Minimum Quarterly Charge*
80.51
$
*Based on 3,000 gallons
Details of the rates can be found in the attached Schedule A.
The reasons for the Board's decisions are under Board Findings.
Order No. 87/25
June 13, 2025
Page 4 of 11
2.0
Background
The Grandview Municipality owns and operates the Sugarloaf Water Utility, servicing 175
water-only customers as of the last full rate application.
Rates were last set in Board Order No. 11/22, with current rates coming into effect January
1, 2024.
3.0
Board Methodology
Simplified Rate Application Process
The Board has issued Board Order Nos. 86/17 and 27/23 establishing and revising the
Simplified Rate Application Process (Simplified Process). This process applies to
municipally-owned public utilities operating water and/or wastewater systems which meet
designated criteria and wish to request Board approval for revised rates.
The following criteria are required in order for a utility to qualify to apply for revised rates
using the Simplified Process:
1. The utility must be compliant with all regulatory reporting, including but not limited
to:
a. The audited financial statements being relied upon for evidence by the Board
in the application must be current and prepared in compliance with The
Municipal Act section190.
b. All outstanding utility deficits should have received approval of the Board.
c. All directives from previous Board Orders should have been followed,
including submitting copies of all by-laws after third reading, as required.
2. The utility must not be experiencing an operating deficit which is the lower of
$10,000 or 5% of operating expenses, when calculated for regulatory purposes.
This includes the appropriate adjustments for capital grants and contributed assets
Order No. 87/25
June 13, 2025
Page 5 of 11
as outlined in Board Order No. 151/08, available on the PUB website at
www.pubmanitoba.ca.
3. The utility must not be experiencing an unexplained annual operating surplus which
is in excess of 20% of operating expenses, when calculated for regulatory purposes.
This includes the appropriate adjustments for capital grants and contributed assets
as outlined in Board Order No. 151/08, available on the PUB website at
www.pubmanitoba.ca. An example of an explained surplus would be a utility
making an annual contribution to reserves for a planned expenditure; when
providing the explanation, all details and supporting documentation about the
intended purpose of the reserve should be included.
4. The municipality must have reviewed the utility operations and expects the
requested rate will be adequate to meet operating costs for the year. If the revised
rates are inadequate, the full application process should be initiated to apply for the
necessary rate revisions.
5. The utility must be seeking a rate increase of no more than The Bank of Canada
Policy Interest Rate +2%, as indicated at www.bankofcanada.ca on the date of the
first reading of the municipal by-law, over the current utility rate. The current utility
rate must have been in effect for a minimum of one year from the date of application
under the Simplified Process. The revised rate must apply equally to all customers
of the utility; however, the utility may request a different revision for the customer
service charge, water and/or wastewater rates. For example, a qualified utility may
request a 2% rate increase for water, a 1% increase in the customer service charge
and no change in wastewater rates, if appropriate. A utility that has domestic and
wholesale rates and only wishes to increase one of those rates must apply using
the full application process.
Order No. 87/25
June 13, 2025
Page 6 of 11
6. Requests for multi-year increases will be denied; however utilities may make annual
requests for rate increases using the Simplified Process, as long the utility continues
to meet the designated criteria.
7. The Simplified Process is at the discretion of the Public Utilities Board, and
applicants may be subject to the full application process at any time, and for any
reason, without explanation or appeal.
The responsibility for determining whether or not a utility meets the designated criteria lies
with the applicant utility. If a utility that clearly does not meet the designated criteria
attempts to submit an application using the Simplified Process, the Board will deny the
application, and charge a processing fee of $500.00.
Review Process
When reviewing an application, the Board has at its disposal two approaches, a paper
review process or a public hearing. After the publication of the Notice of Application, the
Board considers the application and responses, if any, and determines which method of
review is most appropriate. Whenever reasonable, the Board can review the application
using a paper review process, which saves the cost of a public hearing.
Working Capital
Board Order No. 93/09 established utilities should maintain a minimum working capital
surplus, in an amount equal to 20% of annual expenses. The working capital surplus is
the Utility fund balance, excluding any capital-related items plus Utility reserves.
Order No. 87/25
June 13, 2025
Page 7 of 11
4.0 Application
On April 16, 2025, the Board received the Municipality's application for revised water rates
for the Utility. The Application was submitted using the Simplified Rate Application Process
and accompanied by By-Law No. 2-2025 having received first reading on March 11, 2025.
The Bank of Canada Policy Interest Rate as of that date was 3%, allowing the Municipality
to request increases of up to 5% using the Simplified Process.
The application requested increases of 5%. The Municipality provided an affidavit
certifying the Utility meets all Board requirements for the Simplified Filing Process as set
out in Board Order Nos. 86/17 and 27/23.
A Public Notice of Application was issued on April 28, 2025, affording customers the
opportunity to comment to both the Board and the Municipality with respect to the proposed
rate increases. No responses were received.
The Municipality has applied for revised rates to provide for increases in water operating
expenses and amortization expense for the $600,000 Sugarloaf Water System Upgrade
capital project.
The Municipality's application advised it will seek either an additional simplified increase
or a full rate study in 2026 to provide funding for additional system upgrades tentatively
planned for 2028.
Order No. 87/25
June 13, 2025
Page 8 of 11
Working Capital Surplus
As per the 2023 Audited Financial Statements, the working capital surplus on December
31, 2023:
2023
Accumulated Fund Surplus
$2,271,300
Deduct tangible capital assets
$2,046,798
Add long term debt
$0
Add asset retirement obligation
$0
Add utility reserve
$442,226
Equals Working Capital Surplus/Deficit
$666,728
Total utility expenses
$206,446
20% of total expenses(target)
$41,289
The Utility currently meets the Board's recommended minimum working capital surplus of
20% of total utility expenses.
Order No. 87/25
June 13, 2025
Page 9 of 11
5.0
Board Findings
Considering the Municipality's filing and noting there was no public response to the Notice
of Application, the Board has chosen a paper review process.
The Board finds the Municipality meets the required criteria, as set out in Board Order Nos.
86/17 and 27/23, to apply for revised rates using the Simplified Rate Application Process
and grants approval for the rates as applied for, effective July 1, 2025.
The Board directs the Municipality to prepare a Notice for its ratepayers, informing them of
the decisions in this Order.
The Municipality is also directed to file with the Board a copy of this Notice and an amended
rate By-law, having had third reading.
The Board requires the Municipality to review its water rates for adequacy and file a report
with the Public Utilities Board, as well as an application for revised rates if required, by no
later than January 30, 2026.
Regular reviews are important for a financially sound utility and the Board encourages the
Municipality to continue to assess its ability to apply using the Simplified Rate Application
Process.
Order No. 87/25
June 13, 2025
Page 10 of 11
6.0
IT IS THEREFORE ORDERED THAT:
1. Revised water rates for the Grandview Municipality - Sugarloaf Water Utility BE
AND ARE HEREBY APPROVED in accordance with the attached Schedule A,
effective July 1, 2025.
2. The Grandview Municipality submit a copy of its Sugarloaf Water Utility by-law to
the Board once it has received third and final reading.
3. The Grandview Municipality is to provide notice to the customers of Sugarloaf
Utility as soon as possible of all decisions found in this Order.
4. The Grandview Municipality review the Sugarloaf Utility water rates for adequacy
and file a report with the Public Utilities Board, as well as an application for revised
rates if required, by no later than January 30, 2026.
Fees payable upon this Order - $150.00
Board decisions may be appealed in accordance with the provisions of Section 58 of The
Public Utilities Board Act, or reviewed in accordance with Section 36 of the Board's Rules
of Practice and Procedure. The Board's Rules may be viewed on the Board's website at
www.pubmanitoba.ca.
THE PUBLIC UTILITIES BOARD
"Kim Sharman"
Panel Chair
"Jennifer Dubois, CPA, CMA, CTAJ"
Assistant Associate Secretary
Certified a true copy of Order No. 87/25
issued by The Public Utilities Board
Assistant Associate Secretary
Order No. 87/25
June 13, 2025
Page 11 of 11
SCHEDULE "A"
SCHEDULE OF QUARTERLY RATES
1. Quarterly Service Charge & Commodity Rates
July 1, 2025
Quarterly Service Charge
$32.27
Commodity
Water
Rates Per 1,000 Gallons
$16.08
2. Minimum Charges per Quarter
Notwithstanding the rates set forth in paragraph 1, all customers will pay the applicable
minimum charges per quarter set out below, which includes the volume allowance as
listed.
For all metered accounts, volumes in excess of the minimum quarterly allowance will be
charged at the applicable commodity rate.
a. Metered Water Only Customers
Meter Size
(Inches)
Group
Capacity
Ratio
Volume
Included
(Gallons)
Customer
Service
Charge
Water
Commodity
Charge
Water Only
Total Quarterly
Minimum
5/8
1
3,000
32.27
$
48.24
$
80.51
$
1
4
12,000
32.27
$
192.96
$
225.23
$