EPCOR wants to take over Edmonton’s drainage system, from the pipes that carry stinky sewage from people’s homes to the ones that drain rainwater that pools in gutters along major streets.
EPCOR has drawn up a proposal to operate the utility, as it does for water treatment and distribution.
The net value of the contract is $2.6 billion.
EPCOR said one benefit of the subsidiary taking over operations from the city would be that it would also take over the debt related to drainage, which currently stands at $447 million.
That would open up more potential borrowing for the city, which has limits on the amount of debt it can carry.
“It would also bring all of Edmonton’s water utility operations under one roof, allowing for a common approach,” said EPCOR president Stuart Lee.
Lee said drainage would still be owned by the city because it retains 100 per cent ownership of EPCOR.
If council decides to look into the idea, the city will hire an independent consultant for $200,000 to investigate the potential benefits to taxpayers and ratepayers.
In a report to council, city staff said the proposal must meet a number of conditions in order to move forward. Drainage services must not be compromised, and neither should EPCOR’s other responsibilities, for example.
EPCOR has pledged to offer new jobs to all drainage employees with comparable salaries and benefits if city council decides to move ahead with the idea.
Council will debate whether or not to look into the proposal further on Tuesday.