How water and wastewater rates are set

When you turn on the tap, you expect clean, safe water to flow for everything you need. It's our job to make that happen. We put your drinking water through an intensive treatment process, send it through pipes to your home and treat the "wastewater" you flush down the toilet and send down the drain. We also handle stormwater and sanitary drainage, as a part of the integrated drainage system.

The PBR ties our rates to pe​​rfor​​​mance

As part of our rate application, we're expected to meet high​​​ performance standards in:

• Customer service
• System reliability
• Water quality
• Environment
• Safety

The PBR system is based on determining how much revenue will be needed to pay for the cost of building, maintaining, operating, and financing the utility system over the next several years. The utility is required to make prudent decisions that are in the public interest. The regulator (Edmonton City Council) reviews these plans, and approves the utility's rates, fees and charges.

How utility rates are set for each t​​ype of custo​mer

5 principles that determine the rates for each group of customers

Based on co​​st of service

The rates are designed to recover the annual operating and capital costs for the utilities, including a fair rate of return on the investment in utility assets.

No cross-subsidization between customer t​ypes

Customers are grouped into classes based on common service needs (e.g. residential, multi-family, small commercial, large commercial). Each group pays only for its fair share of the costs to provide service to their group.

Equal rates withi​​​n a customer class

Every customer within a group pays the same rates, based on the total cost to provide service to their customer class.

Intergenerational e​​quity

Customers pay for the cost of utility services they receive, and do not pass on costs to future generations.

Rate stability and predictab​​​ility

Unexpected rate increases are minimized by using a formula, and EPCOR bears the risk of annual variances in the cost of service.