Council to receive options for rate relief tonight (CHAT NEWS TODAY FILE)

By Brian Konrad

Peaceful protest planned ahead of council meeting

Council to consider utility relief tonight

Sep 5, 2023 | 9:50 AM

MEDICINE HAT, AB — Medicine Hat city council will take up the issue of high power prices and the method used to set the rates, as it meets tonight at 6:30.

The issue spilled over into a volatile meeting of concerned citizens at Higdon Hall last Tuesday, and came after a special direction from council to bring options to the current high prices to the meeting tonight.

Staff have prepared a cost pressure relief program as a temporary measure to address the recent spike in electricity.

It recommends council approve $19.5 million be applied equally to reach residential utility account holder, beginning with the billing cycle of Sept. 18.

It would see a $200 monthly credit, to a total of $600 for September, October and November.

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A further $5.3 million would be used to provide $500 monthly credits for small and medium business utility account holders, also starting with the Sept. 18 billing cycle.

Council will also consider a recommendation directing staff to draft a utility bylaw amendment establishing interim electricity rates based on “best of market” prices available in the province.

The recommendation also calls for an independent third party review of commodity based business unit (COMCO) to ensure best value for the community.

City staff note that customers have expressed concern over having market rates as the determining factor of pricing options, when the utilities are owned by the city of Medicine Hat.

Customers have also been asking for the “best” price that is below market pricing and expressing concern over the complexity of understanding current pricing options and the fear of locking into an expensive contract for a year.

The city says aligning energy product pricing with commodity market rates in Alberta allows the business to be sustainable over the long term as large capital requirements are likely needed to meet proposed carbon regulations and other issues facing the city.

Prior to the council meeting, a group of people plan to gather outside city hall for what they say will be a peaceful protest over soaring electrical costs.

That gathering is planned for 6 p.m., half an hour before the start of the council meeting.