City Notebook: Power business seems as clear as publicly-owned mud

By COLLIN GALLANT on July 8, 2023.

cgallant@medicinehatnews.com@CollinGallant

Medicine Hat has had “city-owned” gas, power and water tattooed across its forehead for more than 100 years now.

But why, then, do citizens appear to know so little about how “publicly owned” power works, let alone Alberta’s wild west power market, or even their own bills?

You’d think we’d be well-versed on the subject, but don’t feel bad, city councillors appear to be in the same boat.

They have been asking the same sort of questions for more than 18 months now, most recently Tuesday night.

At issue were potential relief options for rising bills, and a final decision to use $500,000 in already allocated funds to help low-income earners is sure to confuse the majority of Hatters who don’t qualify.

They want answers on rates and how City Hall can justify keeping massive profits (earned from exports or not) in the bank, while local bills rise.

Councillors have been debating the same things off and on since the start of their term in 2021, but without a firm frame on the issue.

Some answers come from a requested briefing note presented Tuesday.

The division’s mission, it states, is to operate as a business, on par with other private-sector utility providers in the province, plan for the future and produce a dividend for the city treasury.

What to do with that dividend, forecast to top $130 million at Dec. 31, is up to council however, the note concludes.

That invigorating news led to vague support for a vague review at fiscal year end.

Now, honestly, councillors have good reason to worry about the health of the power business, as well as the need to keep fingers out of the pie.

For years after natural gas tanked, budgets drained $200 million out of a gas and generator replacement fund, all to maintain low property taxes in the absence of gas profits.

Now, there’s light at the end of the tunnel, and power profits have meanwhile kept this city shiny side up. Hundreds of millions in liabilities left from the gas division are being retired.

Millions more will be needed to modernize the power business for a low-carbon future. Income from a growing reserve fund will soon fill a budget gap that’s still $9 million per year.

Still, what’s the difference between making a $130-million deposit to make that happen, or say, $125 million, while cutting the hike of this summer’s power bill in half?

Do you know?

Here and there

Friday was the Stampede Parade, or Calgary’s version of it anyway, which is also the start of schmoozing season in downtown Cowtown.

On Thursday, Jaime Leverton, the CEO of Hut 8, had a private audience with Premier Danielle Smith and then the pair took part in a panel discussion on the future of cryptocurrency in the province.

Texter beware

A judge in Saskatoon this week upheld a contract between a grain buyer and a farmer that – it was argued – was sealed when a “thumbs-up” emoji was sent via text message.

This seems awfully stupid on its face, but it’s more inky when you think about it. Farmers pride themselves for being able to do business from their combine, and for years now you can simply take a picture of a cheque to deposit it.

In a similar vein this week, Medicine Hat College announced that cash will no longer be accepted at the institution’s bookstore or main cafe.

A look ahead

The city’s public services committee will discuss a recent request for municipal funding from HALO at its Monday morning meeting. Also, in case cats weren’t occupying enough of the public conversation, bylaw changes to deter urban deer is on the agenda.

100 years ago

Canada and Canadians needed to buckle down to reverse a recession and fulfil its destiny as an emerging industrial and international power, argued an editorial in the News coinciding with Dominion Day in 1923.

“Too much optimism and too much easy money in boom days has caused a slackness and wastefulness that is breeding inefficiency in all branches of activity,” it read. “To convert that to accomplishment requires but intelligence, integrity and industry.”

Western farmers, unhappy with service at Ft. William, proposed plans for a massive government terminal in Lethbridge. Meanwhile, a grain exchange was being organized in Vancouver.

Homeopathic doctors in the U.S. argued that “flapperitis” was in fact legitimate, presenting as a nervous condition caused by the “strain of living in the Jazz Age.”

“Our nervous systems cannot keep pace with the gait we are travelling today,” argued A.W. La Forge at a conference. “We must slow down or disaster will result.”

Undeterred, an aviatrix in St. Louis set a new altitude record for the fairer sex flying to 16,300 feet. Bertha Horchem was treated for severe frostbite upon landing the open-cockpit craft.

Collin Gallant covers city politics and a variety of topics for the News. Reach him at 403-528-5664 or via email at cgallant@medicinehatnews.com.