Response to Complaint Letter
The AUC released a letter decision relating to a complaint from a customer of Blazer Water Systems Ltd. (“Blazer”) in respect of new charges for water rates.
In response, the AUC directed Blazer to discontinue charging its new water rates, as the AUC held that a utility may not increase its rates without leave of the AUC pursuant to section 103 of the Public Utilities Act. The AUC also noted that it has not, to date, ruled on or received an application from Blazer to change its water rates.
Blazer, by letter dated December 2, 2015, agreed with the AUC that it was not legally able to increase its water rates without leave of the AUC. Blazer also advised the AUC that it will stop charging its revised water rates, and revert to the previously approved amount, with the amounts collected under the revised rate being held in a deferral account. Blazer advised that it would file a general rate application in 2016.
The AUC therefore closed the complaint proceeding, given that Blazer discontinued the application of its new water rates. The AUC held that it would consider how to treat the amounts in the deferral account in Blazer’s upcoming general rate application.
