A Delia resident was successful in an appeal with an Alberta Utilities Commission (AUC) ruling that Delia’s utility rates were discriminatory.
The AUC released a 17-page decision on October 1, outlining Yvon Fournier and Heide Peterson’s appeal to the commission of their utility rates. They challenged the utility rates on the grounds the village did not sufficiently advertise the changes and Delia failed to pass a bylaw consistent with statutory requirements regarding quorum. They also appealed on the basis the rates were discriminatory.
Fournier and Heide own a commercial property in Delia. From 1980 until 2017 the property was vacant. In June of 2017, the property was leased to a commercial business for a one year term. At that time they requested Delia provide water and sewer service, garbage and landfill services. When the lease ended in June of 2018 Peterson advised the village they no longer required these services and the water was shut off.
It was at that time they were informed regardless of the disconnection of services, they were still required to pay utilities.
This is after the village passed a bylaw on April 17, 2017. According to the bylaw properties that did not have water service before April 27, 2017, were grandfathered. However, properties that had service after that date would be responsible to pay basic utilities.
Delia CAO Mark Nikota said this was put in place so owners with buildings that had been vacant for many years would not be instantly charged.
The AUC dismissed the appellant’s challenge on whether the bylaw was properly advertised and ruled that proper quorum was in place at the time of passing the bylaw.
The AUC, however, did agree the rate was discriminatory by grandfathering vacant properties not hooked up previous to April 27, 2017.
“The Commission does not consider that Delia has established a reasonable basis for the distinction in billing customers monthly non-metered charges based on whether they disconnected from water services prior to April 27, 2017, or on or after April 27, 2017. Accordingly, the Commission finds that Delia rates are discriminatory.” stated the decision.
“It’s sad to see small municipalities can copy bylaws from larger places that are discriminatory without getting professional advice. I am concerned about all those bylaws in place. When council discusses to add or change a bylaw, the CAO’s responsibility is to acquire information for council to make a proper decision. In this case, the AUC determined the bylaw and question were discriminatory,” said Fournier.
Delia was ordered to repay Fournier any amount paid from June 1, 2018, onward.
Nikota says the ruling may have a financial effect on the community. He is suggesting to honour the ruling the bylaw may need to be changed. It could mean other account holders who were paying for utilities when they were not connected will have to be refunded. This could cost the village up to $7,500.
“That is a fair amount of money to this village, which is going to have to be covered by other people,” said Nikota.
“Now we either charge everybody no matter what …the other option is don’t charge anybody if they are not using the service. That is probably what we will go back to, but all this has to go back to council,” said Nikota.
He adds a number of other municipalities may have to change their bylaws to conform with the spirit of this ruling.
