Power debate heats up as well known citizens speak out

By COLLIN GALLANT on January 29, 2021.

cgallant@medicinehatnews.com@CollinGallant

Former politicians and well known Hatters are weighing in on the future of the city’s power plant, with high-profile Hatters calling for more information and a pause while another says the possibility of a sale should be explored.

Bob Wanner, former NDP MLA and former public services commissioner at the city, issued an open letter stating the issue should be off the table until after the October municipal election.

On the other end of the political spectrum, former alderman Cathy Smith, a founding board director with the Untied Conservative Party, signed an online petition calling for a potential sales process to be halted.

“I know the value of the electrical utility,” she wrote. “This is the only revenue generator (for the city) besides the taxpayer.”

Wanner stated in a letter addressed to all council members as well as media outlets that council should take as much time as needed to create consensus in the community regarding the future of the publicly owned utility.

“We often hear from some public leaders that public borrowing leaves our grandchildren burdened with debt,” he wrote. “Sale of this historic, valued asset dwarfs by comparison.”

He says the city needs provide a legitimate process to any sale, including an information campaign coupled with consultation and “engaged dialogue” with residents.

“No decision should be made until after an informed public elects a new city council in October,” he concludes.

Two weeks ago utility administrators announced they would begin seeking out potential partnerships with the private sector.

The process is not officially described as a sales process, but top administrators say potential options for the generating assets to the private sector entity coupled with a long-term contract with the city-retained distribution company are being examined.

Several councillors say they consider it an exercise to determine the value of the plant, and potentially accept a deal before it may lose value, such as what happened with natural gas production.

Local lawyer Matt Lofgren said he is willing to hear out the results and said it might be advantageous to sell and invest the funds, as has been suggested by council members.

“I think it’s worth hearing whatever proposals come to the table,” he wrote to the News. He said a large revenue generating fund, created by the sale proceeds, could be a better option than remaining in the business that faces technological change and risk. He also supports overtures from the utility department that talks would involve negotiations on long-term local rates with the new owner.

“One thing is sure, the world is shifting and our traditional Medicine Hat advantage has been eroded, he said. “We need to explore all options.”

Former utility chairman Bill Cocks said Thursday he doesn’t know of any reason the plant would become unprofitable, and Hatters would regret a sale that would “turn our back to 110 years of Medicine Hat entrepreneurship.”

“They (council) have absolutely no mandate to do it, and I don’t know what’s driving this,” said Cocks, who served a fourth term on council from 2013-2017.

“I don’t have a problem with them discussing the idea, getting an idea of the value of it, but it appears that there is a course of action here.”

He has also signed an online petition at the site Change.org, which asks for support to “Keep Medicine Hat public utilities publicly owned and operated.”

It garnered 700 signatures over two days as of Thursday afternoon, though only those who make comment are listed, including Smith, Cocks and Scott Raible, a 2017 mayoral candidate.

Local environmental activist Tina Regehr said public ownership should be retained, and if the city is concerned about renewable power production driving down prices, new profits should be used to build green production to keep local prices low.

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