Forming a Society

A society is usually formed by property owners to acquire a water system when no local government options are available. This occurs when the original owner/developer no longer wishes to operate the utility.

Local public service agencies are normally formed to acquire water systems and provide service. Local service areas of regional districts are the preferred form of organization. However, sometimes formation of a society is the only option available, such as when the number of customers is too small or the regional district is unwilling to form a local service area.

A society is by definition a water utility and is subject to regulation by the Comptroller of Water Rights under the Water Utility Act and the Utilities Commission Act.

Documents

The following documents assist with the establishment of a society and the transfer of the utility:

• An example of an opening page of a constitution for a society, setting out its purpose in relation to the supply of water services
• An example of a transfer agreement
• An information of incorporation package

Transfer Approval Requirements

The Comptroller will require the following documentation to approve the transfer of the water system to the society:

• A copy of the certificate of incorporation for the society
• A copy of the agreement of sale executed by both the utility and the society
• An application by the society for a Certificate of Public Convenience and Necessity (cpcn)
• A water system operating and management plan for the society (who is going to do what, when?)
• An estimate of the operating income and expenses for the water system
• Verification that all lot owners on the water system have been notified of the pending transfer and that they have been offered membership in the society
• Verification of the transfer of all easements and/or the registration of statutory rights of way with the Land Titles office; required within 30 days after the sale is completed and a cpcn is issued

The Utility Regulation Section will review the proposed transfer and make a recommendation to the Comptroller for final approval.