City of Edmonton Waste Services Utility 2020 Utility Rate Filing

Waste Services, working with the Corporate Program and Services Review, initiated a review of the non-regulated lines of business and gained Council approval to wind-down the Commercial Collections business line, and is in the process of investigating the outsourcing of the Construction and Demolition Recycling line of business. [...] With all of these changes, Waste Services will continue to provide waste management services for the City of Edmonton, taking into consideration the needs of residents, the preservation of natural resources, the protection of the environment and the financial capabilities of the City. [...] The calculation of the risk exposure includes the following identified risks (in thousands of dollars): 21 WASTE SERVICES UTILITY 2020 Utility Rate Filing The allowance for Leachate Removal and Treatment attempted to mitigate the risk associated with legacy issues with the Clover Bar Landfill including the removal, treatment and containment of leachate. [...] After accounting for the PAYG requirements and risk allowance, the cash balance is positive in all years due in part to the short-term loan from the City of Edmonton which will be utilized in 2019 to cover non-regulated losses and due to the significant cash reserves held for both the Landfill Post Closure Liability and the Bremner Lagoon Liability. [...] 22 WASTE SERVICES UTILITY 2020 Utility Rate Filing 8.0 Utility Summary Schedule (in thousands of dollars) Line 1 - Operations and Maintenance The decrease in operations and maintenance from the 2019 Forecast primarily reflects expected cost reductions related to Biosolids due to the closure of the ECF, and anticipated reduction in hauling and landfill costs due to the commissioning of Anaerobic Di.