AUC filing 30345 – South Red Deer Regional Wastewater Commission

On October 2, 2025, the South Red Deer Regional Wastewater Commission (SRD) filed an application with the Alberta Utilities Commission (AUC) regarding The City of Red Deer's wastewater treatment rates and cost allocation methodologies.

Following a formal regulatory review process, the AUC issued a decision on July 9, 2026, that included directions related to rate calculations, cost allocation practices, governance processes, and future rate-setting.

Summary of AUC Directions

Rate Calculations and Cost Allocation

The AUC affirmed The City's overall wastewater rate-setting framework and several core financial practices used to establish wastewater treatment rates. The decision also identified specific calculation and allocation issues requiring correction to ensure rates are based on accurate and consistent financial information. These corrections include:

• Cost of debt calculations.
• Administrative expense allocations.
• Treatment cost allocation calculations.
• Corporate support cost allocations.

Retroactive Application and Settlement

The AUC directed The City to apply the required corrections retroactively to affected rate years beginning March 1, 2023. The City must calculate the net financial impact of the corrections and propose a settlement mechanism for AUC review. 

Future Rate-Setting Improvements

The AUC directed The City to establish a balancing mechanism that better aligns forecasted and actual costs in future rate-setting. The mechanism is to be implemented during the second half of 2026 and first applied in setting 2027 rates. 

Quality Assurance Measures

The AUC directed The City to enhance quality assurance procedures by implementing additional checks related to debt calculations and rate model data validation. 

Governance and Collaboration</h4

The AUC directed The City and SRD to restart the Joint Planning Committee required under their agreement and meet regularly to support information sharing, annual planning, and future rate-setting discussions. 

Additional Information

For those interested in the complete details of the decision and all AUC directions, please visit the  AUC website.