Council expands ‘fair entry’ utility program, everyone else will wait until year end for potential relief
By Medicine Hat News on July 5, 2023.
With extraordinary profit, could come an extraordinary dividend, but likely not until the end of the year, city council determined late Tuesday night on potential utility relief options. That discussion was sparked last week after profit forecasts at the city’s power plant rose to $134 million in this year’s record Alberta power market, while power prices could raise residential bills by $50 this month. Staff listed options to help Hatters with high power prices this summer, and council approved a $500,000 expansion to the low-income “fair entry” subsidy program after asking for rate explanations and “relief” options to help the roughly 400 recipients. But councillors also voted to reopen the analysis at year end to determine whether a massive expected profit should flow more directly to residents. “I appreciate staff’s work, but this (recommendation) stops well short of what is challenging – not just those on fair entry program – but all our residents,” said Coun. Darren Hirsch. “We’re seeing extraordinary dividends, and for us to squirrel it away?” Councillors debated the measure for 45 minutes at the late meeting, but approved the $500,000 item by an 8-1 margin, along with the proposal for year-end review. Mayor Linnsie Clark said she, like other councillors, supported the “Fair Entry” expansion as an initial step forward. “It’s not fair to hold them hostage until we figure it out,” said Clark, reiterating her preference for reserve funds to fund tax offsets. “I’ll keep an open mind for the discussion we have at the end of the year.” City council heard two reports late at Tuesday’s meeting, describing both the city’s power rate-setting policy and presenting a “one-off” relief program. The additional $500,000 toward a program for low-income earners would raise on-bill credits to $200 per month until the end of the year for about 400 households currently registered. Coun. Andy McGrogan said, “I think it’s step one of a couple steps. I think we want more, and a look at the end of the year.” Other options considered included: – A five-cent discount on power in August and September, estimated to be worth a total of $5.8 million; — a one-time utility credit worth $100 in August on all bills, with a total cost of $3.23 million; – developing a floating rate cap, no cost estimate provided; – charging the lower between the default and fixed rate on a monthly basis; – forgiving a portion of overdue bills. Most of those were not recommended as administrators say they distort market practices that are outlined in their council-approved business plans. 20-19
