Coaldale town council adjusts local water consumption rate to address wholesale cost increase

Posted on February 13, 2026 by Sunny South News

Town of Coaldale

During its February 2, Regular Council Meeting, Coaldale Town Council voted to increase the Town’s 2026 water consumption rate following a January 1, 2026, increase to wholesale water rates charged to regional customers by the City of Lethbridge.

As of April 1, Coaldale residents and businesses will see their water consumption rate increase from the previously approved 2025 rate of $1.32 per cubic meter to $1.918 per cubic meter.

After completing two cost-of-service studies in 2023, the City of Lethbridge discovered that water consumption rates being charged to its regional customers were below the actual cost of providing service. In other words, expenses associated with water treatment, pumping and storage, and the ongoing maintenance and lifecycle renewal of underground infrastructure were not being fully recovered through the sale of treated water. 

As a result, in September, 2025, Lethbridge City Council amended Bylaw 3999, the City’s Water Services Bylaw, to establish new water consumption rates for the City’s regional customers, including the Lethbridge Regional Water Services Commission—the regional wholesaler through which the Town of Coaldale purchases its treated water.

On January 1, those new rates came into effect which, in turn, triggered a need for Coaldale Town Council to adjust the town’s own water consumption rate.

“Obviously, this wasn’t an adjustment anyone wanted to make,” said Town of Coaldale Mayor, Jack Van Rijn. “But because cost recovery is essential to maintaining safe, reliable water service, and because Coaldale buys its treated water from the Commission, it was ultimately unavoidable given the increase in wholesale cost”.

As of April 1, Coaldale residents and businesses will see their water consumption rate increase from the previously approved 2025 rate of $1.32 per cubic meter to $1.918 per cubic meter.

Under the new rate:

• residences that consume 10 cubic meters of water per month will see an average increase of $9.67 on their monthly utility bills;

• residences that consume 20 cubic meters of water per month will see an average increase of $16.34 on their monthly utility bills;

• businesses that consume 100 cubic meters of water per month will see an average increase of $88.70 on their monthly utility bills; and

• businesses that consume 200 cubic meters of water per month will see an average increase of $155.40 on their monthly utility bills.

Over the coming weeks, the Town will share information about the rate increase through multiple channels—including via the Town’s website and the Town’s social media accounts—to explain when the new rate will take effect, and why the adjustment was necessary.

“As a Council, we wanted to make sure there was enough time between approving the increased rate and when it comes into effect so residents and businesses get advance notice and an opportunity to understand why the 2026 rate is changing,” said Van Rijn. “That’s why Council set an implementation date of April 1. It gives us time to communicate through multiple channels, answer questions, and help people plan ahead—rather than making a change with little warning.”

Van Rijn added that while no one wants to see their utility bills increase, regional water supply remains the most affordable and sustainable option for Coaldale.

“I know residents will be disappointed to see their utility bills go up, but it’s important to recognize that even with this increase, it is still more cost-effective for Coaldale to purchase treated water through the Commission than it would be for the Town to return to operating its own water treatment system. That’s ultimately why Coaldale moved away from treating its own water to begin with. Regional supply allows us to access a modern, professionally operated treatment system without having to build, staff, and maintain a full-scale plant locally, and it helps keep long-term costs lower for the community while ensuring a safe and reliable water supply.”