Ratepayer association calls on city to scrap utility access fee, council says it is under review

The access fee, known as the MCAF, is commonly used by municipalities for third-party utility companies setting up shop on city-owned property.

The utility then downloads the cost to customers to make up the money.

Despite having a publicly-owned utility company, Medicine Hat council in 2018 added the MCAF to fill a $16 million deficit in its budget.

REVIEW UNDERWAY

The ratepayer association in its letter asked the mayor and councillors why the fee still stands despite the previous council’s initial plans to have it phased out by 2023.

In a response to the association Thursday afternoon, city council confirmed “the items referenced in the letter will be informed by the third-party review of the city’s energy business that city council directed in September 2023.”

“In addition to confirming the overall strategic approach for our energy business moving forward, the review will also inform where we go with the Municipal Consent and Access Fee in the future,” council said in a statement.

Council also highlighted its own actions on rising utility costs to enact affordability relief and wholesale market rates earlier this year.

“While the review is underway, we will continue to focus on progressing our strategic plan in the interests of our broader community,” the statement added.

The association, known as MHURA, also asked why the fee is rising while the utility made $100 million in profits from the last two years.

The MCAF is currently set at 15.25 per cent but is scheduled to increase to 18 per cent in 2024, city staff confirmed.

Eliminating the fee would, on average, save families $138 per year and save businesses $595 per year.

The city council response did not directly address concerns over the rising fee or confirm if it would remove it entirely at this time.

Gord Cowan, one of four newly-minted executives, said the city needs to make it clear why the fee exists if they plan to continue with it.

“If there is a specific budget deficit that this fee has to look after, then the city has to let us know that; it has to be transparent,” Cowan told CHAT News after the news conference Thursday.

“The fact…the fee was quietly moved through and increased is a concern to us and we just want to see the reasoning behind it.”

Cowan said MHURA plans to look into every fee charged to Hatters.

“We will be looking at all fees that Medicine Hat residents are charged on their bills,” he said.

‘NO WAY, SHAPE OR FORM ADVERSARIAL’

MHURA’s letter was sent soon after a separate letter was sent by concerned residents asking Alberta government officials for an inspection of the city and its utility company and amid an effort to recall the mayor.

While Cowan said MHURA’s activity was not related to the other letter or the recall petition, he acknowledged the timing of all these complaints could be a sign of mistrust in city hall.

“Is that a sign that people are starting to question what’s going on? Yes, it probably is, and well should be,” Cowan said.

“It’s important that the people understand why they’re being charged and what they’re being charged.”

Members of MHURA maintained the letter sent to the city was not combative.

“The letter was in no way, shape or form adversarial,” Cowan said.

by Eli J. Ridder | @EliRidder

Ratepayer association calls on city to scrap utility access fee, council says it is under review

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