Calgary Mayor Proposes Enmax Takeover of Troubled Water Utility
Calgary Mayor Jeromy Farkas has unveiled a bold plan to address the city's struggling water management system by proposing that Enmax, the city-owned electrical utility, take over operations. The mayor's proposal comes amid swirling rumors about Enmax's future, which Farkas firmly dismissed in a recent interview.
Dismissing Sale Rumors, Proposing Expansion
Contrary to speculation about selling Enmax, Mayor Farkas emphasized the utility's strong track record. "Enmax has been well-run across generations of leadership," he stated. "You don't dismantle something that's worked for 30 years because markets are noisy. You don't sell the family silver because the budget is tight." Farkas argued that Enmax is one of the best-run utilities in Canada and should remain under city control.
Instead of divesting, Farkas sees an opportunity for Enmax to expand its role. He believes the utility's decades of operational expertise make it the ideal candidate to manage Calgary's water system, which has faced significant challenges in maintenance and reliability.
Merging Utilities for Better Service
The mayor's plan involves merging the city's water utility with Enmax to create a more efficient and resilient system. "There is a great opportunity here to better integrate our water utility with Enmax operational expertise," Farkas explained. He pointed to a study on the Bearspaw pipeline issues that recommended independent, expert management for the water system.
Farkas highlighted several potential benefits of this integration:
- Improved efficiency through reduced duplication
- Enhanced reliability of water services
- Better overall service for Calgary residents
- Expert oversight of capital projects
"If we can reduce duplication and improve reliability by working more closely across these utilities, we owe it to Calgarians to explore that," the mayor asserted.
Funding Through Asset Sale
To finance necessary water infrastructure repairs, Farkas proposes selling Versant Power, Enmax's controversial asset in Maine. The acquisition of this American power company cost approximately $1.5 billion, and Farkas was one of only two councillors who opposed the purchase.
The mayor now advocates for selling Versant Power, potentially generating up to $2 billion. This revenue would be directed toward:
- Replacing aging water pipes
- Funding other critical water projects
- Relieving the financial burden on city ratepayers
Farkas emphasized that this approach would address the water system's deficiencies without compromising Enmax's ownership structure.
Addressing Water Management Failures
The mayor was blunt in his assessment of current water management. "It's very clear that city administration has not been able to perform at the level required of them by Calgarians when it comes to the affordability, the maintenance, the reliability of our water utility," he said.
Farkas believes that integrating water services with Enmax would bring the expertise needed to overcome these challenges. The proposal comes as Calgary continues to deal with the aftermath of the Bearspaw pipeline problems, which exposed weaknesses in the current management approach.
"Integrating the water utility into Enmax makes a lot of sense to me," Farkas concluded. "There would be efficiency, resilience, better service."
