Utility ratepayers calls for return to old way of setting power rates

By Brian Konrad

Passage of open ended bylaw a mistake says group

Utility ratepayers association urges city council not to pass electric utility amendment

Oct 13, 2023 | 3:15 PM

MEDICINE HAT — A group calling itself the Medicine Hat Utility Ratepayers Association is upset with a proposed interim rate plan city council is considering to address residents concerns around high utility prices.

The association released a letter addressed to a all members of city council dated October 8th, urging them to defeat Bylaw 4796. The bylaw which would amend the Electrical Utility Bylaw passed first reading at the last council meeting. It would see interim best market electric energy rates set in three month blocks.

The letter comes as council prepares to hold a public hearing into the proposed interim rate option during Monday’s council meeting.

The association points out that the city offered a fixed rate of 8 cents per kilowatt hour up to and including the month of June 2023. The city then announced, 6-month fixed rates contracts would no longer be offered and ratepayers could instead choose to lock in for 12 months. That contract was being offered at 16 cents, a 100 percent increase.

The letter states utility customers were given the option to comply with the 1 year contract at 16 cents or face a 400 per cent increase if accepting the Regulated Rate Option (RRO) of 30.5 cents per kwh.

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They further argue that as the city electrical grid and power supply stations belong to the taxpayers and citizens of Medicine Hat, and is the only source of electricity available, it should be operated as a CO-OP with all costs related to the Comco business be made known to its members.

The association says if Comco is being operated as a for profit entity, the citizens of Medicine Hat should be given the opportunity to seek an alternative supplier for electricity.

The letter notes that the managing director of energy did not attach numbers to the bylaw or any sources comparable to arrive at the “best in market rate”.

The group advocates defeat of an open-ended bylaw and a return to setting rates that are directly related to the cost of utility production.

Medicine Hat Utility Ratepayers Association Letter

The letter is signed by the Association President David Frey, Vice President Barry Knodel and Sue and Ken Boss from the Thai Orchid Room.

In a media briefing ahead of Monday’s public hearing, Mayor Linnsie Clark believes the rate option strikes the right balance and she is looking forward to hearing what the public thinks. “With relation to going with a wholesale rate now as opposed to something that might take a little more time to figure out and assess, is that we can implement this interim rate right now and give Hatters more relief on an immediate basis,” stated Clark.

Council is scheduled to give second and third reading to the bylaw amendment following the public hearing Monday night. If passed, the new rate would take effect November 1st and could be in the range of 11.6 per kilowatt hour. That is based on October’s fixed annual rate. Starting in January, the rate would reset every three months.