Council meets again regarding soaring local power bills

By COLLIN GALLANT on September 1, 2023.

cgallant@medicinehatnews.com@CollinGallant

Council members met Wednesday night in a closed session with utility administrators, presumably to discuss measures to address the high cost of power prior to a planned presentation next week.

Wednesday’s special session of council was the second in three days to address the issue, including a brief meeting Monday to bump up debate on the issue to Sept. 5’s regular meeting of council.

The only topic of the closed meeting was “cost pressure relief program update” with the discussion considered advice from officials and protected under regulations.

This week several council members attended a protest meeting to answer questions and get feedback from Hatters angry about high power bills.

In July, council approved an expansion of the “Fair Entry” utility program that now provides $1,200 in 2023 to qualified low-income earners who apply.

That program was introduced in early 2023 with administrators stating they expected up to 3,000 residents to sign up among the estimated 6,000 Hatters who earn less than $25,146 for a single, $31,304 for a couple and $46,726 for a family of four. That is based on 2022 income tax returns and a federal standard to determine low-income levels.

At that time council also directed staff to prepare for a rate review later in the year when the whole-year finances of the utility division were more advanced.

New monthly rate announced today

Before city councillors debate on utility relief options Tuesday, a new power rate will be published today.

On the first of each month the City of Medicine Hat utility division announces its default rates.

However, those have become a lightning rod this summer as prices spike across Alberta, and with Medicine Hat basing its price on the average in Alberta, it too has risen steeply.

Most Hatters are now on fixed contract rates, but revert back to the monthly price when contracts expire.

Local administrators use four prices to arrive at the average default rate. For September, Direct Energy’s RRO rate will be 28.9 cents per kilowatt hour, Enmax at 26.5 cents and Epcor at 27.8 and 27.4 cents for Edmonton and rural customers, respectively.

Those include an additional amount – about 10 per cent – to recover of the province’s price deferral program from last winter.

The local price in August was 30.5 cents.

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