City names firm to conduct utility review
By COLLIN GALLANT on March 8, 2024.
cgallant@medicinehatnews.com@CollinGallant KPMG will study how the city’s energy business operates and provide a list of potential changes by the end of the year, a city committee heard on Thursday afternoon. The global accounting and consultancy firm was among five firms short-listed during a request for proposals late last year toward a study of how the city power and gas company’s set rates, earn profits from internal and exports sales, and how those profits could be used in the municipal financial picture. “The review include a look at the current state and how we got to where we are,” said Rochelle Pancoast, the managing director of council’s energy, land and environment division at Thursday’s energy committee meeting. “Analysis will look at what are the drivers and changes coming at us, including the energy transition, and provide a list of options.” “Council will consider our business philosophy and determine if any changes are needed,” said Pancoast. Council approved the department’s request for a high-level third party analysis last spring after rates were lowered following record setting summer on the power market and $32 million in affordability rebates were put onto utility bills. That came after widespread criticism about local rates and how they were structured, as well as complaints that the city was making too much money when customers faced record utility prices amid a wider inflation crisis. The city expected a record dividend over $130 million in 2023. Financial year-end statements are expected next month, but administrators have said large amounts of record profits resulted from sales to the Alberta electric market. Energy Committee chair, Coun. Darren Hirsch said Thursday that KPMG is a well-respected financial and governance analyst, which should give council and residents confidence. “It we be an interesting process and we look forward to it,” he said. 12-11
