Water Utilities Application Process

The Water Utilities application process requires a Certificate of Public Convenience and Necessity (CPCN) which is granted by the Comptroller of Water Rights under authority from the Water Sustainability Act and the Utilities Commission Act.

Ministry of Forests, Lands and Natural Resource Operation's Utility Regulation Section provides assistance in developing and delivering all of the necessary information required for the application process.

Things to consider about forming a Water Utility:

• Can another water purveyor in the area provide water service?
• How water utilities fit into the subdivision and land development process
• CPCN application process for obtaining a Certificate of Public Convenience and Necessity
• Water system design requirements
• Criteria for determining if a water utility will be financially viable
• What reserve funds will be required and how to determine the amounts
• How the reserve funds are to be administered
• Criteria for setting water rates and the filing of a water tariff
• Approvals required by regional health authorities under the Drinking Water Protection Act and Drinking Water Protection Regulation
• Licensing requirements for surface water or groundwater sources under the Water Sustainability Act, if applicable

Things to know if you own and operate a Water Utility:

• Basic components of the water system including the age, condition and operating features and the long and short term maintenance requirements
• The rates should be adequate to provide for day to day operation and maintenance as well as to provide a reserve for future replacement
• How to apply for rate increases and extensions for water service
• An emergency plan in the event of a major system failure or health risk that requires the notification of your customers

Things to know if you are a customer of a Water Utility:

• Telephone number or contact for the utility owner/operator
• Where you can view the Utility's water tariff
• Terms and conditions for the receipt of water service
• How to make an inquiry or lodge a complaint

Guide to Applying for a Certificate of Public Convenience and Necessity (CPCN)

• CPCN Application Guide (PDF)
• Appendix 1 CPCN Financial Guidelines (PDF)
• Schedule A Depreciation Schedule (XLS)
• Appendix 2 Water Tariff (Sample) (DOC)
• Appendix 3 CPCN Checklist (PDF)
• Appendix 4 Application for CPCN (PDF)
• Appendix 5 Guidelines for Groundwater Reports and Well Testing in support of CPCN (PDF)
• Appendix 6 Capital Cost Estimate Form (Sample) (XLS)
• Appendix 7 Letter of Contribution (Sample) (PDF)
• Appendix 8 Letter of Undertaking to Subsidize Operating Losses (Sample) (PDF)
• Appendix 9 Utility Company Projected Cash Flow Statements (Sample) (XLS)
• Appendix 10 Bank Confirmation Form for Utility Reserve Fund and Irrevocable Letter of Authority (PDF)
• Appendix 11 Rent Charge Agreement (Sample) (DOC)
• Appendix 12 Letter of Undertaking Registration of Rent Charge Agreement (Sample) (PDF)
• Appendix 13 Transfer Agreement (Sample) (DOC)
• Appendix 14 Letter of Undertaking -Transfer Agreement (Sample) (PDF)
• Appendix 15 Notice of Application (PDF)

Other Information: 

• Design Guidelines for Rural Residential Community Water Systems (PDF, 1MB)
• Water Utility Information Bulletins
• Practice Directive #1 - Applications for CPCN and Necessity and Amendments (PDF)
• Practice Directive #2 - Applications for a Water Tariff and Amendments (PDF)
• Trust Fund Release Checklist (PDF, 113KB)