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Regional Servicing Update 2013-03-22

Regional Servicing Update CRP Executive Meeting Paul Fesko, P.Eng. 2013-March-22

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Regional Servicing Update 2013-03-22

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Regional Planning

Servicing Governance

Supporting Regional Goals

Calgary’s regional solution supported and aligned with regional planning and governance.

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Regional Servicing Update 2013-03-22

IF

A regional plan and governance

that Calgary supports

THEN

Calgary would share its water

license

CONDITIONS

Calgary must be the service

provider

CHOICES

Consider the possible business models for being a service provider

IMPLEMENT

Wholly Owned Subsidiary

(WOS)

• City Council considered its regional strategy to create the WOS in parallel to and in support of the implementation of the CMP

• The WOS would have worked in conjunction with the governance model of the CRP and the CMP – CRP membership is required for servicing

Why a Wholly Owned Subsidiary?

3

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Regional Servicing Update 2013-03-22

• GOA has not yet approved the CMP • GOA did not approve the WOS

– GOA wants a very different governance and business model – Other key differences

• Public Utilities Act (PUA) exemption • Water licences • System equity • Pipe access fee • Access to regional grants

• GOA “Water Conversation” is covering many similar themes • Calgary City Council decided to take a different direction

from the WOS strategy.

Recent Developments

4

4

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Regional Servicing Update 2013-03-22

• Calgary’s Water Licence available to CRP members.

• Water and wastewater services will be provided at City limits and administered through bi-lateral agreements, supported by a Water Resource Plan.

• Calgary will not invest in future infrastructure outside City limits.

• Regional customers will pay their share of the capital investment required for infrastructure used within the City to provide service to them.

Calgary’s Role in the Region

Current Council Direction

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Regional Servicing Update 2013-03-22

Proposed Regional Servicing Model

City Council

6

Water Resources

SERVICE LEVELS • All water and wastewater services

provided at Calgary’s boundary • No services by Calgary in the region • No asset ownership in the region • Water licence availability

Regional Customers or Commissions

SERVICING GOVERNANCE •MSA’s •Water Resource Plans •Council Policy PLANNING GOVERNANCE •CRP and CMP

PRICING • Cost of service rates • Full incremental costs of growth

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Regional Servicing Update 2013-03-22

Date

Cumulative

Licence

(ML)

Per

Capita

(l/day) Population

Future Population

That Could

Be Served

1895 5,600 - - -

1933 72,200 923 83,400 214,000

1971 249,200 667 398,000 1,015,000

1981 460,000 751 591,900 1,650,000

2012 460,000 410 1,120,000 3,000,000

Historical Water Planning

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Regional Servicing Update 2013-03-22

Switch from supply side to demand

management strategies

0

200

400

600

800

1,000

1,200

19

34

19

36

19

38

19

40

19

42

19

44

19

46

19

48

19

50

19

52

19

54

19

56

19

58

19

60

19

62

19

64

19

66

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10Per

Cap

ita D

em

an

d (

lpcd

)

Year

From Supply to Demand Management

Per capita demand (lpcd)

Population Average day demand (Ml/day)

↓ ↓

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Regional Servicing Update 2013-03-22

• Leak detection $30 M

• Main Replacement $600 M

• Water Metering (mid 1990’s) $60 M

• Demand Programs $30 M

• Plant recycling $60 M

• TOTAL approx $780 M

Investments to Increase Licence Headroom

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Regional Servicing Update 2013-03-22

Bow River Allocations

EID BRID WID

Irrigation Calgary Other The Bow

Irrigation

CRP Members

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Regional Servicing Update 2013-03-22

Water Use Forecast

11

Total Available Licence Allocations 460,088 ML

Licence Limit based on Diversion Rates 350,000 ML

100,000

200,000

300,000

400,000

2011

500,000

2016 2021 2026 2031

By 2031, regional customers could represent 9 percent of Calgary’s

usage

Calgary

Regional

Actual

An

nu

al D

eman

d

(Meg

alit

res)

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Regional Servicing Update 2013-03-22

• Calgary will continue to support CRP members with water and wastewater services for growth and development under the CMP

Summary