About 250 crowded into council chambers for the Sept. 5, 2023 meeting where utility rates and a cost pressure relief program were on the agenda. (Photo Courtesy Kevin Kyle)

By Chris Brown

'best of market' pricing on the table

City council passes $33M relief program for utility customers

Sep 5, 2023 | 11:10 PM

MEDICINE HAT, AB – After a summer of skyrocketing power prices and utility bills, Medicine Hat City Council is giving customers immediate cost pressure relief.

Measures for interim “best of market” electricity rates and an investigation into how the city sets its energy rates were also passed by council on Tuesday.

All nine councillors unanimously approved a cost pressure relief program totalling more than $33 million.

Every residential utility account holder will receive a cost pressure relief payment of $400 on their bill for September and $200 in October and November.

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The initial recommendation from city staff called for three payments of $200 each. Council voted unanimously to double the first payment.

The payments will go to 32,459 customers at a total cost of about $26 million.

Mayor Linnsie Clark is pleased council was able to deliver the payments as soon as possible.

“There’s a lot of cost pressures on residents so the best we can hope is that it does provide some assistance to help ends meet for people in our community, for business in our community and I hope we’ve found the right balance,” she said.

The city is encouraging anyone who doesn’t need the cost relief to donate their amount to the Community Warmth Program to help those struggling to pay their utility bills.

READ MORE: Frustrated utility ratepayers wants answers, relief

Coun. Robert Dumanowski said the relief payments can create a level of certainty for citizens and produces a happy medium between costs to local ratepayers and making money on the utility.

He said the municipal-owned utility is the envy of everyone in the province and “we have a responsibility to ensure its future.”

Relief will also go to 3,534 small and medium businesses. They will get a payment of $1,000 in September and $500 in October and November.

As with the residential payments, council unanimously voted to double the first payment, bringing the cost to the city to about $6.1 million.

Those payments will come into effect on the Sept. 18 billing cycle.

VIDEO: Livestream of the citizen utility meeting

Coun. Alison Van Dyke said the amount of the relief package offered is unprecedented in the city’s history.

The city is also waiving disconnect fees, late fees and NSF fees that were charged to customers in the months of June to Sept. 18.

Changes to how the city sets its rates won’t be as immediate.

City staff have been directed by council to deliver a draft utility bylaw amendment that establishes interim electricity rates based on “best of market” prices available in Alberta.

“That’s what people are really looking for is some stability in their rates and knowing that Medicine Hat is giving them a good rate, that’s good as compared as well to other competing energy providers in the province,” Clark said. “We hope that that will be the solution at least on an interim basis that will provide residents with some of the financial security that they need.”

At the meeting council heard city staff will have that bylaw to council as soon as possible.

The city will also initiate a third-party review of the energy business unit known as COMCO to ensure it is providing the best value for the community. A milestone check-in for that is set for the Dec. 4 council meeting.

About 250 people crowded into council chambers for the start of the meeting.