The province is extending loans to natural gas and power distribution companies to cover lost revenue from a utility deferral program that was put in place this spring to help ease financial worries of residents caught up in the COVID-19 pandemic response.--NEWS PHOTO
cgallant@medicinehatnews.com@CollinGallant
A new provincial bill would provide loans to utility providers to help them carry the cost of deferred power and gas bills during the early stages of the COVID-19 pandemic response.
Bill 14 was introduced late Wednesday as the legislature resumed sitting in Edmonton, and would provide more than $300 million in loans to companies that waive late fees and collecting bills during a 90-day period this spring.
Dale Nally, the associate minister for natural gas and electricity, also told a morning press briefing that customers who defer bills this spring will be able to settle accounts with accumulated bills over 12 months.
“Getting hit with a balloon payment isn’t going to help anyone,” he said, adding that the loans will help companies absorb lost revenue until it is collected. “It’s the best way to generate support for the program that’s a benefit to Albertans.”
The loans, available to gas and power distribution companies, won’t however, be made available to cover the costs incurred on other portions of a utility bill – many of which are being rolled in to the deferral program by municipal utility companies.
It’s not immediately clear if the City of Medicine Hat, which uniquely provides gas and power, will apply for the loans.
Local administrators have not provided an estimate on their potential costs of deferrals from its customers. It is allowing amounts for water, sewer and trash collection to be deferred as well.
Last week, the News reported that about four per cent of customers had missed payments during the first six weeks of the program, encompassing at least one full billing cycle throughout the city.
If all those 1,300 accounts deferred three monthly bills, the total could approach $1 million.
Separately, the city announced a policy of allowing up to 24-month repayment plans determined on a case-by-case basis for account holders to clear up balances.
Cypress County, which has deferred water and sewer charges during the same time frame, has announced it will allow ratepayers to spread the balance from the three month period evenly over the last six months of the calendar year.
On Wednesday, Nally said that potential of loans to help municipal utility providers for those purposes wouldn’t fall under the bill, or the purview of his department.
“That’s a municipal issue,” he said.
The money for loans to gas and power companies is being provided by a combination of the Alberta power balancing pool, the Alberta Electric System Operator and the Alberta Government.
On March 18, the province announced that utility disconnection proceedings would be halted and residential, farm and small business utility customers could hold off paying bills until June 18 without penalty.
It is meant to give those customers more leeway to manage finances as the economy slowed and jobs were lost during an initial stay home order from health officials.
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