Calgary City Councillors are divided over Mayor Jeromy Farkas’s proposal to transfer the city’s struggling water system to Enmax, the municipal power utility. While Farkas has not officially presented the idea to the council or Enmax, he sees it as a way to address the recommendations made by a panel that assessed the city’s management of the failing Bearspaw water main.
The panel suggested that the city should separate its water department into an independent entity, similar to Edmonton’s Epcor, a municipally controlled corporation. Epcor, like Enmax, is city-owned but manages both electricity and water services. Currently, Enmax handles water, sewage, and waste fees collection, while the city oversees these services.
Farkas aims to implement all the panel’s suggestions and believes that entrusting water operations to Enmax could be a cost-effective alternative to establishing a new company. He emphasized the importance of executing the recommendations without burdening taxpayers or ratepayers with increased costs.
Enmax responded positively to the mayor’s proposal, stating that water services align with their growth strategy. The company expressed readiness to collaborate with the city on exploring this option, highlighting its expertise in managing critical infrastructure in Calgary.
Farkas mentioned that consolidating utility operations under one entity could be advantageous, especially considering Enmax’s involvement in infrastructure projects. While he is in the early stages of exploring this concept, other councillors are still evaluating the idea.
Some councillors, like Andre Chabot, believe that integrating water management within Enmax’s existing structure could be a sensible move. However, there are differing opinions on whether water services should be removed from direct city oversight.
Farkas also suggested that Enmax should consider selling Versant Power of Maine, which was acquired for $1.8 billion seven years ago. The proceeds from this sale could potentially fund infrastructure projects, lessening the financial burden on Calgarians. Councillors expressed mixed views on this proposal, with discussions on the topic yet to unfold.
While Mayor Farkas and some councillors support exploring these proposals further, others are cautious about the potential impacts on Enmax’s operations and the city’s financial interests. Enmax indicated that no discussions have taken place regarding divesting Versant Power, emphasizing its importance in the company’s long-term strategy.