1. EPCOR White Rock Rate Application
Revenue Requirement Application 2011, 2012, 2013
DRAFT FOR PUBLIC COMMENT
December 2010

2. Regulatory Process for Water Rates
Water rates regulated by the Comptroller of Water Rights, who works for the Ministry of Natural Resource Operations
Comptroller issued a decision for 2008 to 2010 rates in 2008
- Approved projected capital and operating costs
- Deferral accounts for consumption, property taxes, interest and income taxes
- Direction to remove capital costs for Arsenic Treatment project until study completed
New regulatory application is required for the 2011 to 2013 period prior to the end of the year

3. 2011-2013 Proposed Rates Key Drivers Maintain aging infrastructure
Maintain reliability, fire flow requirements and water quality
Cross-connection control program (water quality)
Inflation
Modest customer growth and consumption trends
Increases partially offset by operational efficiencies
Two Components to Rate Changes
General increase to cover costs to provide water services
Rate rider to refund customers for deferral account balances

4. 2011-2013 Forecast Operating Costs
Forecast annual increase in operating costs of 3% on average due to:
Increase in labour costs due to additional work related to cross connection control program and 3% salary escalation
Increase in utilities costs based upon BC Hydro power price forecast
Increase in general and administrative costs
 ($ millions)
2010 Decision
2011 Forecast
2012 Forecast
2013 Forecast
Total Operating Costs
$1.52
$1.61
$1.63
$1.67

5. 2011-2013 Forecast Capital Expenditures
Capital upgrades of $2.64m are required to maintain reliability and water quality, meet fire flow requirements and replace aging infrastructure.
Rate Base Capital includes:
Water main upgrades
Wells (assessment and rehabilitation)
Annual programs (meter replacements, hydrant replacements)
Galvanized piping replacements
No Cost Capital includes:
New water service installations
 ($ millions)
2011 Forecast
2012 Forecast
2013 Forecast
Total
Rate Base Capital
$1.06
$1.17
$1.07
$3.30
No Cost Capital
(0.21)
(0.22)
(0.23)
(0.66)
$0.85
$0.95
$0.84
$2.64

6. 2011-2013 Proposed Rate Increases
Current rates are insufficient to recover expected costs, therefore, a rate increase is required
Rate increases smoothed over 3 year period
Proposed monthly rates and rate riders are:
2010
2011
2012
2013
Minimum Charge
$ 14.38
$ 15.18
$ 16.02
$ 16.91
Additional Charge
$ 5.17
$ 5.47
$ 5.78
$ 6.09
Rate Rider
$ 0.82
- $ 0.15
- $ 0.14
Total
$ 20.37
$ 20.51
$ 21.66
$ 22.86
Change (Monthly)
$ 0.14
$ 1.16
$ 1.20
Note: Based on average residential consumption of 25 m3 per month

7. Monthly Bill of a Residential Customer (Comparison of proposed 2011 rates with neighboring communities’ 2010 rates)
Note: Based on average residential consumption of 25 m3 per month
Source: Delta – Bylaw No Surrey –
Richmond – Bylaw No Vancouver – vancouver.ca
Langley –

8. Stakeholder Engagement & Regulatory Process
- Consultation with Customers
- Feedback
Regulatory Process – Next Steps
- EWR to file application mid-Dec 2010
- includes application for interim refundable rates
effective Jan 1, 2011
- Public Notice of Application

9. QUESTIONS?