The Alberta Utilities Commission (AUC) has ruled Morinville doesn't have the right to unilaterally set rates for Sturgeon County and Legal on the water line the communities share.
What exactly the decision will mean for the long-running dispute is unclear because Morinville councillors have not yet decided how they will respond.
Councillors were set to receive a detailed legal briefing Tuesday night after the Gazette went to press. Mayor Lloyd Bertschi said before fully understanding the decision he can't say how the town will respond.
"I have had a very cursory brief and we are getting a much more comprehensive one tonight," he said. "I will have to wait and see what opinion we have until after the facts are done."
The dispute over the regional water supply line dates back to 2007. The pipe was built in 1980 and supplies all three communities with water. Since 1992, the pipe has also boosted supplies to St. Albert.
In 2007, Morinville completed an engineering report that recommended having all municipalities pay more into the system for its long-term replacement. Morinville, which has always administered the system, began charging Sturgeon and Legal higher rates, which those municipalities have refused to pay.
Morinville argued it was the sole owner of the water line and that Sturgeon and Legal owned only an agreed portion of the line's capacity.
Sturgeon and Legal believe they are co-owners and Morinville cannot unilaterally change the rates.
While the commission argued they did not need to establish ownership but merely control of the water line, the decision makes it clear the AUC believes all of the municipalities have a share.
"While Sturgeon and Legal could point to many documents, letters, conduct of the parties over the years and admissions by Morinville to support their characterization of the relationship, the Commission notes that Morinville had no documents, letters or course of conduct to which it could point to support its position," reads the decision.
They also said that, given all sides agreed the three municipalities had a fixed capacity in the system, there was no reason to suggest they should not have equal powers on deciding rates.
"The fact that all three parties have a perpetual fixed share in the capacity of the system does not suggest that one party, namely Morinville, has any claim of exclusive ownership."
The commission did allow Morinville a small increase to the rates to better reflect the town's operating expenses.
Sturgeon response
Sturgeon County councillors were briefed on the decision Tuesday morning and expressed hope it would bring an end to the issue.
Several potential customers in Sturgeon have applied to join the water line and been turned down in recent years in part because of this dispute.
County CAO Chris Micek said all sides will probably have to meet and sort out the details of a new agreement. He also said the county will have to wait and see how Morinville responds.
He told council the dispute had cost the county approximately $200,000 in legal fees.
Coun. Tom Flynn said it would be good to have the dispute in the past.
"I think this is good news. It helps the county grow and clarifies the future and the whole region can benefit from the asset that is there."
