Penticton city council to preview recommended price hikes in utility rate review – Okanagan

In Penticton, B.C., a proposed utility rate review that’s recommending a series of price hikes will be previewed by city council on Tuesday before it goes out for public engagement.

According to the city, the utility rate review is designed to ensure the reliability of the city’s infrastructure.

“As a municipality, one of the most important responsibilities we have is ensuring that residents have dependable utilities, which covers electrical, water and storm and sanitary sewer,” said Kristen Dixon, the city’s general manager of infrastructure.

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“The utility rate review is a chance to assess where we’re at in terms of needs and identify the best options to ensure we have the ability to maintain the long-term sustainability of our infrastructure.”

The city says the report will include recommendations from consultants that include rate increases over the next several years for residential customers.

Those rate increases include:

• An electrical utility rate increase of 10 per cent in 2024 and seven per cent in the next three years. That equates to an average monthly increase of $11.81.
• A treated water rate increase of 6.4 per cent. That equates to an average of $3.42 a month.
• A storm sewer rate increase of 30 per cent. That equates to an average of $1.57 a month.
• A sanitary sewer rate increase of 10.2 per cent. That equates to an average of $4.60 a month.

Those increases add up to $21.40 per month, or $256.80 a year.

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“One of council’s key priorities is asset management focused on long-term sustainable service delivery, and this proposal lays out a clear path to ensuring the sustainability of our infrastructure in a measured way,” Dixon said.

The city noted that included in the review is a potential change in water costs via an inclining rate model.

The city said water that is deemed essential, such as for cooking and showering, has a lower rate, while water used for more discretionary purposes, such as landscaping or water features, has a higher rate to encourage conservation.

The report also includes price comparisons against other municipalities.

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“The data shows residents, overall, pay less than most regional comparisons,” the city said.

“And in terms of electrical, the report shows Penticton residents pay less than Fortis BC customers and that under proposal rates would be in the middle of the pack when compared to other Okanagan communities.”

The city also said that council will be asked to direct staff to increase utility rates by an interim five per cent while the review is being completed.

Council meetings in Penticton are available on the city’s website.

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