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City of Calgary Water Supply Agreement with Foothills County, AUC Decision 25911-D01-2020

Link to Decision Summarized

Rates – Water Services

In this decision, the AUC approved the application from the City of Calgary (“Calgary”) for a water supply agreement between it and Foothills County (“Foothills”) for at least five years according to section 30(1) of the Municipal Government Act (“MGA”).

Discussion and Findings

Calgary and Foothills agreed to enter into a new agreement providing that Calgary supply potable water and sanitary sewer service to Foothills (the ”Service Agreement”).

The AUC determined that, as section 30(1) of the MGA explicitly mentioned water, but did not reference wastewater, the AUC’s jurisdiction was limited to aspects of the service agreement that pertained to water services. Accordingly, the AUC’s findings in this decision related only to the supply of potable water under the service agreement, not wastewater.

Schedule G of the Service Agreement provided, among other things, that the usage rates and fees for water services would be determined based on guiding principles approved by Calgary City Council, including a cost of service basis. Schedule G of the Service Agreement also provided that the principles and practices used to determine usage rates and fees could be changed by way of amendments to Schedule G or by the findings or directives of the AUC according to its decisions and orders.

The AUC was satisfied that the service agreement between Calgary and Foothills, as it related to the supply of potable water, was necessary and proper for public convenience and properly served the public interest. On that basis and noting the absence of any objection to the application pursuant to section 30(1) of the MGA, the AUC approved the potable water supply agreement, as filed.

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