Power plant plebiscite unlikely

By COLLIN GALLANT on January 20, 2021.

cgallant@medicinehatnews.com@CollinGallant

Mayor Ted Clugston says council will “take a hard listen” to Hatters views on potentially selling the city-owned power plant, but doesn’t see the potential to hold a plebiscite at next fall’s election or waiting for a new mandate from voters.

“We’ve talked about those things, and those things could happen, but it’s a very complex industry … it would take a long time to get the public up to speed,” said Clugston, speaking for the first time Monday after last week’s announcement of strategic review.

He said the current council has made a series of difficult, contentious decisions and shown “courage” throughout the term and especially during the pandemic.

“I’d be surprised if there was a plebiscite.”

Last week the city’s energy division announced it would seek “strategic alternatives” to maintaining public ownership of the generating facility that supplies local power and exports for profit onto the Alberta grid.

There is no formal timeline on the review, and no indication that there will be a public information campaign coming from the city.

Council members have told the News the move is in response to forecasts that increased renewable energy production across Alberta may lower export prices and challenge gas-fired plants, like Medicine Hat’s, on bare costs.

The city’s budget generally depends on dividends from the plant, boosted by exports, though some councillors say a more stable return would come if the proceeds of a sale were invested properly.

Utility chair Coun. Phil Turnbull has said he would like to see at least a town hall meeting on the subject, and another council veteran, Coun. Robert Dumanowski, has said some level of formal public engagement is needed.

Several other councillors, including utility committee members Jamie McIntosh and Jim Turner, previously said Hatters should make their feelings known now. They would support a vote before the fall election if the offer was right.

Clugston says confidentiality is usually paramount when the city considers sales to private companies, such as with several oil and gas dispositions.

“We’ve come down and sell the gas asset and the first (the public) will hear about it is when we sell it,” he said.

“It doesn’t give the public time for feedback or anything.

“If we were to do something with the power plant, it is such a big part of the community and our identity, along with gas, that we needed to hear from the community.

“So we’ll see how it unfolds.

“If it’s totally unpalpable, if 95 per cent said ‘don’t you dare sell our power plant,’ we’ll take a hard listen.”

Late last year, the city’s petroleum production division sold its one-quarter stake in the Glauc C oilfield field north of the city.

That was marketed by an industry service early in that fall and only became widely known when the News revealed the process, which was also described by officials as a “valuation process.”

Other minor properties have been sold in blocks, including a batch of properties last fall.

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