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By Chris Brown

Power plays

Alberta bill will support utility providers as customers defer payments

May 6, 2020 | 5:02 PM

A bill introduced in the legislature Wednesday will allow Alberta electricity and natural gas providers to apply for loans to offset some of the costs of the Utility Deferral Payment Program announced by the province in March.

Even though the City of Medicine Hat is in the unique position of owning its own utility company the legislation does apply here.

Premier Jason Kenney announced the utility bill deferral program for consumers as the pandemic took hold and the province announced its COVID-19 economic relief program.

Bill 14, for providers, was introduced by Dale McNally, associate minister of natural gas and electricity.

The province anticipates deferred payments will total close to $337 million. Up to $119 million has been approved for loans through the Balancing Pool and a further $104 million has been provided by the government. As well, about $114 million will be deferred by the Alberta Electric System Operator.

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It’s expected loans to retailers will be covered over the next 12 months as customers pay the money they have had deferred.

The city’s own deferral program, announced on March 20, included:

• Automatic utility bill deferral (delay) for the next 90 days for all residential, farm and small commercial customers without penalty (Commercial customers can clarify their classification by contacting Customer Services)
• No utility disconnection will occur for the next 90 days (also eliminating the disconnection fee of $58.50 and reconnection fee of $58.50)
• Disconnection warning letters and the related $20.00 service fee will be deferred for 90 days.
• Transfer of utility arrears to property tax accounts (and $40.00 service fee) will be deferred for 90 days
• No late penalties will occur for customers who utilize the deferral.
• Customer overdue reminder notices will replace the disconnection warning letters asking customers to contact Customer Service for special payment arrangements (no fee associated)

Under the provincial program, Albertans can defer utility payments until June 18 without late fees, added interest payments and without fear of having services cut off or reduced.

Albertans are eligible for the program if they have been diagnosed with COVID-19, have been directed by health authorities to self-isolate, have lost their job or are taking care of a family member.

This applies to bills for residential, farm and small commercial electricity consumers, who consume less than 250,000 kilowatt hours of electricity per year and natural gas consumers, who consume less than 2,500 gigajoules per year.