Time for the PUB to review Winnipeg water rates

We take you now to just over a month ago, to the Public Utilities Board and its decision about water and sewer rates for Russell, Binscarth, Angusville, Rossburn and Gambler First Nation.

Why? Just wait.

The area is supplied with water and sewage services by the Russell-Binscarth Water and Wastewater Utility, which has a total of 1,014 customers.

As the PUB noted in an Aug. 27, 2026 order on the utility’s rates, “The [water treatment plant] gets water from two groundwater wells that were upgraded in 2016 and the raw water main was installed in 1984. The water distribution system is primarily cast iron pipe. The raw water line will need to be upgraded in the near future to keep up with demand.”

The board is keeping a close eye on things in Russell-Binscarth. And one of those things is the utility’s curious amount of missing water. In PUB terminology, it’s called “unaccounted for water” and it’s a bad thing.

The PUB points out that water systems regularly lose water — an acceptable industry standard is about 10 per cent of the total amount of water produced.

“Water losses may be caused by such events as distribution line losses, service leaks, water used for fire-fighting or line flushing and under-registration of water meters,” the PUB says. “The Board expects any utility experiencing a greater volume of unaccounted for water to provide an explanation and plan to address the water losses.”

And Russell-Binscarth has had a problem in the last few years: in 2025, it somehow lost 17.3 per cent of the water it produced.

That’s better than in some past years: “The Board notes the percentage of unaccounted for water decreased from 19.1 per cent in 2022 to 17.3 per cent in 2025. This was after two large volume users (curling rink and an arena) were metered in 2024,” the latest PUB order says. “The Board is concerned the utility’s unaccounted for water still does not meet industry standards. The Board directs the municipality to monitor leaks in the system and submit an updated plan to address unaccounted for water by no later than Dec. 31, 2026.”

Now, the City of Winnipeg is specifically exempt from having its utility rates reviewed by the PUB — it sets rates as it wishes and for years has been not only covering its water and sewer costs, but has also been skimming cash for general revenues. In other words, charging a cost-recovery fee and then essentially collecting a tax on top of that.

Other municipal water utilities in the province, like Russell-Binscarth, are managed more stringently. They aren’t allowed to turn a profit or run a deficit and must apply to the PUB for rate changes.

Some groups are suggesting that Winnipeg’s exemption should be changed by the provincial government, because, the groups say, water and sewer are public utilities, being operated by a monopoly. And utility monopolies should have to defend their rates and how they spend that money.

It’s a good idea. Water and sewage users should only pay for what they use. And, in particular, the City of Winnipeg shouldn’t get to skim a little extra off the top in the form of an unannounced, unregulated revenue source. If you’ll pardon the pun, it muddies the water.

Stop to consider the value of Russell-Binscarth’s unaccounted for water. The utility is expecting total water costs for 2026 to be $1,554,737. Which means their disappearing water, if a loss rate of 17.3 per cent continued, would cost the utility roughly $269,000 to produce.

It’s small change compared to Winnipeg’s water and sewer costs.

Imagine if that kind of detailed fiscal scrutiny was applied to Winnipeg’s water and sewer system by an independent outside arbiter.

It might be eye-opening.