Winnipeg councillors consider water rate hike, future of utility
Last Updated: Tuesday, November 4, 2008 | 9:18 AM CT
CBC News
The future of Winnipeg's water service is under review at city hall, as councillors consider who should set the utility's price, and who should control it.
Winnipeg's drinking water travels to the city by aqueduct from Shoal Lake, a 227-square-kilometre lake on the Manitoba-Ontario border. (Sean Gallup/Getty Images)Councillors on the city's infrastructure and public works committee are being asked to approve a 2.65 per cent increase in water and sewer rates in 2009. The hike would cost the average household an extra $20 per year, increasing the annual bill to $795.
But Winnipeggers could see an end to its elected councillors setting water rates.
Mayor Sam Katz first mentioned it in his state of the city address in February, arguing that the water utility, currently a city department, should function outside the control of council.
"I think it's time that we look at our utility as a true utility, so that it can function independent of political interference."
PUB to control water rates?
Now a new city report says it could be the Public Utilities Board, rather than council, that decides how much Winnipeggers pay for water.
The PUB, whose members are appointed by the provincial government, already sets water rates for every other major municipality in Manitoba. It also controls rates for electricity, natural gas and auto insurance in the province.
Katz says the city should go the same route with its water utility.
"When they want an increase … they'll have to make their case," he said.
The issue is not just about the cost of water; it could also be about who runs Winnipeg's water system, and the possibility of an independent utility selling water to neighbouring municipalities.
City staff has been investigating the issues in recent months, and councillors will learn more about the options later this week at a closed-door seminar.
Winnipeg's drinking water travels to the city by aqueduct from Shoal Lake, a 227-square-kilometre lake on the Manitoba-Ontario border.
