PUC sets new water rates

Sault Ste. Marie's Public Utilities Commission has approved a 5.5 per cent increase in water rates for 2023.

That will mean a hike of $2.46 a month for an average residential customer using 14 cubic metres of water a month.

"This increase is well below the current rate of inflation," Kelly McLellan, chief financial officer, told PUC directors on Thursday evening.

PUC is one of the lowest-cost water providers in the province and the new rate will help the city-owned water utility retain sustainable growth, replace its aging infrastructure and operate as effectively and efficiently as possible, McLellan said. 

The water rate was approved as part of a 2023 budget including a record $11 million in city projects including:

• $3.2 million for water main relining
• $1.4 million for Gros Cap pump station - electrical and HVAC
• $484,300 for production faciities renewal
• $480,700 for GIS - utility networks migration
• $390,500 for meters
• $244,700 for Zone 2 discharge 
• $166,600 for distribution system renewal
• $119,800 for new services
• $52,100 for removing all remaining lead services in the city

The water utility has budgeted for a $6.3-million operating margin, which will be reinvested into future operations, maintenance, administration and capital infrastructure projects.

Rob Brewer, PUC president and chief executive officer, said the commission expects to receive about $1.3 million in water infrastucture contributions this year from developers of new subdivisions.

Ontario's Safe Drinking Water Act requires that drinking water systems have a licensed operator, so water installations are turned over to the PUC once they are commissioned.