November 16th, 2024

Billing dates will decide when first ‘cost-relief’ payment comes

By COLLIN GALLANT on September 21, 2023.

The statement date for City of Medicine Hat utility bills will determine when customers will see the first instalment of a relief program credited to their account, but officials are assuring the public that three payments as planned will be paid out by the end of 2023.--News Photo

cgallant@medicinehatnews.com@CollinGallant

It’s been two weeks since city council approved millions in “cost-pressure relief” payments, but some utility bills arriving in mailboxes this week won’t yet reflect credits promised to help cover high power prices.

That is because the program passed unanimously by council took effect Sept. 18, and accounts with “statement dates” before then won’t see the initial $400 payment ($1,000 for small business customers) applied until the following bill.

City officials told the News on Wednesday the utility billing system is considered the most efficient and cost effective way of providing payments that total $33.1 million for about 36,000 city power customers.

While “billing periods” may align with calendar months, the dates that statements are issued can vary greatly, which may cause confusion about when credits are due.

Customers will statement dates before Sept. 18 – found on the top right corner of a paper bill – will get their first instalment on bills mailed in October.

Each account will receive payments on three consecutive bills no matter the dates, officials said.

Second and third instalments will be $200 each for residential ratepayers and $500 for small- to medium-business accounts.

Rate due in October

At the same time council passed the relief program it also approved a staff recommendation to return with a “best in market” rate option after widespread calls for simplifying contract and default rate options for the city’s franchise area.

Mayor Linnsie Clark opened the Sept. 18 council meeting with a special announcement stating she had misspoke during recent media interviews that the new rate would be presented at that meeting.

“It’s inaccurate as shown by the minutes – it will be coming forward at our first council meeting in October (Tuesday, Oct. 3),” she said. “It’s an apology or a correction.”

The third portion of council’s utility debate earlier this month was to have utility staff commission an in-depth review of the division’s business model and analysis of potential changes to how the city derives and uses a dividend from power profits.

At the time, administrators said a complex review, and finding a qualified third-party to under take it, would take some time. They will report progress on the issue at the first council meeting in December.

Editor’s Note — This version of the report has been updated to correctly reflect the next city council date as Tuesday, October 3. Meetings are typically held on the first and third Mondays of a month, unless they fall on a recognized holiday. In this case, the holiday for National Day for Truth and Reconciliation on Saturday, Sept. 30 will be observed on Oct. 2.

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