The sun glints though the windows at Medicine Hat City Hall. -- News file Photo
cgallant@medicinehatnews.com@CollinGallant
New utility rates will be announced this morning, though payment may not be required until mid-June as provisions are put in effect to help customers conserve cash while dealing with the financial crunch caused by COVID-19.
But, utility providers in southeast Alberta are stressing that a provincial program to extend payment dates does not cancel bills that will eventually come due.
The City of Medicine Hat’s utility department, along with regional municipalities and three rural utility providers say that paying what you can now, will avoid a potential balloon payment in three month’s time.
“The city is encouraging everyone that can pay to continue paying or pay what they can to minimize the deferral catch-up for them at the end of June,” stated Medicine Hat corporate services commissioner Dennis Egert on Tuesday.
His department complied with a provincial order allowing residential and small business to defer gas and electric bills for three months. Internally, it expanded the measure to include water, sewer and other amounts, halted all disconnects. That is automatic for about 21,000 utility accounts – no action is needed – but customers will continue to receive bills and can make payments.
The same is true in Cypress County for water, sewer and trash collection, as well as the Town of Redcliff, where customers are urged to “pay what you can, as early as you can” by administrators.
In Medicine Hat, late fees or utility disconnection processing costs won’t be charged during the 90-day period, which ends on June 18 – a measure officials estimate could result in more than $60,000 in lost revenue.
The city utility department has also asked larger commercial, industrial and condo/street-lighting customers to contact the department for one-on-one discussions.
The Forty Mile Gas Co-op, which supplies gas to about 2,000 farm, residential and business owners, has informed members that the provincial program only applies to those who use less than 2,500 gigaojoules of gas annually (a typical residence uses about 120).
Cam Klatt the general manager of Forty Mile Gas Co-op told the News that only a “small number” has inquired about the program.
“We’ll honour it, and absolutely work with (members), but if people can keep paying, they absolutely should to keep from getting that (big) payment in the future,” said Klatt, who said Forty Mile remains in solid operational shape, and will continue responding to any emergency situation while employing precautionary measures.
Rural electrification Association EQUS, which supplies farms, homes and businesses in a huge area southwest of Medicine Hat, stated that those in need of bill-deferral need to apply with the province for such relief and provides that information on its website.
“It is important to note that this program does not pay for any costs of utility bills on your behalf, it simply defers them, with the outstanding balance not owing until the end of the 90-day period,” read a statement.
Power Rates
The city announces the commodity prices for gas and utility delivery on the first business day of each month and those rates are based on the average of default rates offered across the province.
Early postings with regulators show power prices will drop considerably, likely caused by a drop in demand as commercial and industrial usage drops in the province.
