Thompson residents in dwellings equipped with water meters can expect to pay nearly 40 per cent more for water and sewer services in 2012 after the Public Utilities Board (PUB) approved the city's rate proposal for 2012-2014 on Jan. 25.

For 2012, the quarterly service charge will be $50.73, water will cost 93 cents per cubic metre and the sewer rate will be 89 cents per cubic metre. The minimum quarterly charge for homes with 15-millimetre service will be $78.03 and the average annual bill, based on consumption of 250 cubic metres per year, will be $657.92.

"The Board recognizes that the City of Thompson's water and wastewater infrastructure is in need of significant rehabilitation," said a news release from the PUB. "The City of Thompson created a new water and sewer utility in 2010 in an attempt to manage these infrastructure requirements. The Board commends the City for its initiative and recognizes the challenges the new water and sewer utility faces. The Board is optimistic that the new utility will resolve these challenges."

The interim rates for 2011 were a quarterly service charge of $50.82, a water rate of 62 cents per cubic metre, a sewer rate of 47 cents per cubic metre, a minimum quarterly charge of $67.17 and an average annual utility bill of $475.78.

The sewer rate increased the most from 2011 to 2012, at 89.36 per cent, while the water rate went up 50 per cent and the minimum quarterly charge rose 11.7 per cent. The quarterly service charge actually decreased 0.18 per cent, but the average annual utility bill is expected to be 38.28 per cent higher this year than last.

Next year, the rates will rise again to $52.26 (quarterly service charge), 95 cents (water), 91 cents (sewer) and $80.16 (minimum quarterly charge), with the average annual utility bill expected to be $674.04.

In 2014, there will be a quarterly service charge of $53.01, a water rate of 97 cents per cubic metre, a sewer rate of 93 cents per cubic metre and a minimum quarterly charge of $81.51, which will add up to an average annual utility bill of $687.04.

The approved rates are similar to those originally applied for, says Carol Taylor, a project specialist (finance) with the city.

"The numbers had to be adjusted," she said. "However, we tried to stay as close as possible to the original. We had asked for $1.74 a cubic metre [for 2011] and we got $1.09 a cubic metre."

Prior to the interim rates being approved, the city had asked for a quarterly customer service charge of $52.80, a water rate of 97 cents per cubic metre and a sewer rate of 77 cents per cubic metre for 2011. In 2012, they would have risen to $53.86, 99 cents and 79 cents respectively, and to $54.94, $1.01 and 80 cents in 2013.

The rates that are approved have a combined water/sewer rate per cubic metre of $1.82 in 2012, $1.86 in 2013 and $1.90 in 2014. The original application sought $1.74 per cubic metre in 2011, $1.78 per cubic metre in 2012 and $1.81 per metre in 2013.

The approved rates should ensure the utility will have money to put towards capital projects, in addition to covering its operating costs.

"The approved rates include capital money, some of which has been set aside for upgrades to the water distribution system," said Taylor.

The final utility bills for 2011 have yet to be sent out, so it remains to be seen how much the difference between the costs of providing water and sewer services and the revenue collected will be.

"We haven't got the final numbers for the year," said Taylor. "We have one billing to be done which will include the consumption for October to December 2011 until then we will not have our final numbers for the year."

The PUB also approved "a decrease in Stittco Utilities Man Ltd.'s (Stittco) propane commodity rate of approximately 17.5 per cent effective for propane consumed on or after February 1, 2012," according to a Jan. 24 news release.

"The reduction in the commodity rate is expected to decrease the average residential customer's propane costs by approximately 10 per cent."

Commodity rate changes are quarterly adjustments made to account for changes in commodity costs. Wholesale propane prices have generally gotten lower due to warmer weather than usual during the heating season.