ERE Water Co-operative Ltd.

   In 1975, a Water Cooperative was established under the Rural Utilities Act, to take over operations of the ERE water system from the developer. A board of Directors for the Water Co-op was elected from the ERE residents according to the Act, from that point on this board is responsible for the operation and maintenance of the water system.

In 2016 the water system was upgraded to a Log 4 disinfection standard.

In November 2017, the ERE Water Cooperative filed a lawsuit against residents Tittel/Abraham for unpaid water fees stemming from the withdrawal of their membership in the water co-op in June, 2016.

The trial was heard in 2018 in which the water co-op lost. The co-op appealed the decision. The appeal decision was decided in 2019, this reiterated the previous court ruling in favor of the defendants.

Both trials concluded that there were no fees owing as the defendants did not receive any water from the co-op and that the Rural Utility Act allowed for their withdrawal.

   The Rural Utility Act provides the following guidance regarding Reserve Funds;

"The directors of an association supplying one or more of electricity, gas or water that owns works shall, in accordance with the regulations, maintain a reserve for the replacement, extension or increase in capacity of its works. RSA 2000 cR-21 s17;2003 c5s3"

It is worth noting that the water system infrastructure dates from 1975, which raises the issues of replacement and upgrades to the underground supply lines including shut-off valves at each members connection point.

The Log4 upgrades in the Pump House building, were completed in 2016 and must also be considered when determining the size of the Reserve Funds required to pay for the eventual replacement costs of this equipment.