Calgary Mayor Jeromy Farkas has publicly proposed that city-owned power utility Enmax consider taking over the operations of Calgary’s water system, a move the company has quickly expressed interest in, though city councillors remain split on the idea.
Mayor's Vision for Utility Consolidation
On Wednesday, Mayor Farkas pitched the idea as a way to act on recommendations from an independent panel that reviewed the city's water crisis. This panel had reviewed the city’s management of the critically damaged Bearspaw water main. The mayor has committed to acting on all the panel's findings.
Farkas argues that giving water to Enmax would cost less than creating a brand new company from scratch. He wants to avoid hitting residents with higher bills or taxes. “I'm just really looking at ways that we can action those reports without inducing rates or tax shock for ratepayers or taxpayers,” the mayor told CBC News.
Farkas thinks Enmax makes sense because it's already set up and has a proven record. “And I think having a pre-existing entity with an accountable governance mechanism with a proven track record of success, which Enmax is, it makes a lot of logical sense from my perspective,” Farkas explained.
Farkas also noted that Enmax already works with the city on infrastructure projects in new suburbs and upgrades. Putting all utilities under one roof could make things run better and smoother, he says.
Enmax Expresses Interest and Readiness
Enmax was quick to respond to the mayor’s public overture, indicating its willingness to explore the possibility. In a statement released Wednesday, the company suggested that managing water services aligns well with its overarching “growth strategy.”
Alexandra Frison, a spokeswoman for Enmax, confirmed the utility’s position. “As a utility with strong governance and operational discipline, Enmax is well positioned to operate water services and welcomes the opportunity to work with the city to explore this option,” Frison stated in an email.
She highlighted the company’s existing capabilities and experience. “We have proven expertise in operating and maintaining critical infrastructure in Calgary and, with this, our priority will be to bring our expertise, capabilities and resources to support any constructive conversations.”
Enmax's willingness suggests it could use its existing expertise to run water services alongside power.
Panel Recommendations and Epcor Model
The push for the mayor’s proposal stems directly from the recommendations of a panel established to scrutinize the city’s response to the catastrophic failure of the Bearspaw water main. This incident brought to light significant issues within Calgary’s water infrastructure management, prompting calls for a full review and structural changes.
The panel recommended that the city split off its water department as its own separate entity. It specifically recommended a “municipally controlled corporation model” as an ideal structure to emulate.
The panel pointed to Epcor, Edmonton's utility, as a successful example of this approach. Like Enmax, Epcor is fully city-owned, but it runs both power and water for Edmonton. In Calgary’s current setup, Enmax handles the collection of water, sewage, and waste management fees, but the city itself is responsible for operating these essential services.
Farkas’s idea seeks to mirror Edmonton’s integrated utility approach, believing it could bring similar benefits for governance, accountability, and operational effectiveness to Calgary’s water services.
Council's Early Reactions and Considerations
The mayor's thrown the idea out there publicly, but he hasn't formally pitched it to council or Enmax's board yet. So councillors are still wrapping their heads around what this would actually mean for the city.
Council members are all over the map on this, which makes sense since it's brand new. Rookie Coun.
Nathaniel Schmidt admitted he needs to learn more before weighing in. “I have a lot of learning to do before answering that question in a way that's constructive and completely understands the issue,” Schmidt told reporters on Wednesday.
Andre Chabot, the longest-serving councillor, will also need to think through the pros and cons. Moving water services is a huge deal that affects everyone in Calgary, so council will need to do serious homework on how it would actually work and what it would cost.
The complexity of integrating water services into an existing power utility, despite Enmax’s expressed readiness, means that council will likely demand extensive analysis and public consultation before making any definitive decisions on the mayor's exploratory concept.
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Mayor Farkas indicated he is in the initial phases of exploring this concept, with many of his council colleagues also just starting to Look at the potential move.
This article was created with AI assistance.
