Chestermere to hike utility rates $30 a month after years of undercharging

Chestermere residents will see a jump in their utility bills of about $30 a month after the utility company's new CEO spotted years of charging less than the cost of providing the services.

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Chestermere Utilities Inc. CEO Leigh-Anne Palter says she understands that it's a message most people don't want to hear.

"We've spent a tremendous amount of time in trying to find the balance between ensuring that the organization has what it needs to be sustainable and at the same time ensuring that we aren't creating [an] undue burden on our customers," Palter said.

Shesays without an increase the utility would be looking at a $3.2 million operating shortfall.

Facebook reaction swift

The city posted a letter explaining the increase on its Facebook page, drawing strong comments.

"This is outrageous! How are families with one income supposed to afford these increases?" Jennifer Haines wrote.

"There should be an audit done. Average bills will now be around $160 or more per month?"DaveJaskaadded.

"This is ridiculous. Since CUI has come into the picture we have seen bills double. Something smells fishy."

Mayor shocked, seeking answers

Mayor Patricia Matthews says city council is shocked over the news and will do everything it can to ensure it doesn't happen again.

"We need to... give our residents some peace of mind in us as a regulator that all of our processes moving forward have the appropriate checks and balances in place so no one goes through this again,"Matthews said.

The matter will be on the agenda at the Jan. 18 city council meeting.

The utility company provides water, wastewater, garbage and recycling services to the city of about 15,000 residents.