Letter: Power plant an investment that continues to return millions

By Letter to the Editor on February 4, 2021.

Dear editor,

The last ‘Medicine Hat advantage’ will be gone if we sell the power plant and build a recreation centre in Box Springs. Selling at a time of low generation means a low price. We deserve a plebiscite, or at least open public hearings. Never waste a good crisis.

The power plant sells power into the grid, as required, with a simple calculation by the plant operator. Another turbine is put online and we make money. This system was put into operation in the 90s when the plant expanded.

Solar and wind power are decades away. Gas is clean-burning and the bridge fuel to take us through. Solar has problems, as it’s only 30-40 per cent efficient, and electricity cannot be stored like oil in a tank. Let’s not forget our recent soirée into solar above the power plant costing us millions and now sold for scrap.

We’ve gone from expanding the plant to selling it. Why? Power generation will explode with electric cars. Why not take advantage? We’d need billions to compensate for the plant’s yearly $30-million revenue. Investing in securities looks to be a bigger risk.

Past councils have built legacy buildings – Co-Op Place (now costing three times the original to maintain) or the Esplanade (with a theatre too small to hold events profitable enough). Let’s not sacrifice existing facilities like the Moose and Crestwood Pool to put up a rec centre in Box Springs. Build in the other end of the city. We already have hotels there for tournaments.

Think of the existing industries (CanCarb, Hut 8, Methanex, etc.) all being international and here for the cheap power. CanCarb even generates its own power, selling to the grid through the city. These industries could move if a new company starts raising rates, and take all those jobs and taxes with them as Western Co-Op did in the 80s.

What about retirees not being able to afford higher utility costs? We’re a retirement community.

To summarize, the power plant is an investment that continues to return millions. As we owe millions for well abandonments, the plant will continue to help offset this.

Council hasn’t had a passing grade in investments, which is sitting badly with the public. Council is to represent the people of the city, not themselves or whatever benefit may be held out to them. We deserve a plebiscite.

Stephen Palmer

Medicine Hat

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