October 8th, 2024

Fee hikes to add $11 average to utility bills

By Medicine Hat News on January 3, 2024.

Heat from the city's river valley power station distorts the CPKC train line and the industrial plants in north of the city on Tuesday morning.--News Photo Collin Gallant

medicinehatnews.com@Medicine Hat News

Annual increases to utility service fees for 2024 will add about $11 per month to the average residential property in Medicine Hat this year.

That equates to a 4.5 per cent increase that was approved as part of a two-year budget in late 2022. Since estimates for 2024 have not changed, no amendments were proposed among general amendments approved by council in December.

The fees relate to delivery and administration charges aside from commodity rates that were changed in late 2023.

Natural gas delivery fees, which remained flat in 2023, will increase by 3.4 per cent in 2024.

Power distribution system requires a 4.3 per cent increase in 2024, bringing the average estimated bill to $49.96 per month.

Water fees will rise 4.5 per cent, bringing the average monthly household bill to $50.88, while sewer charges move 2.5 per cent higher to $27.77 on average.

Solid waste collection fees will rise from $27.14 per month to $27.77 in January.

The five utility units have a combined $16.2-million capital construction budget in 2024, following a $55.6-million program in 2023.

The municipal consent and access fee on power and gas bills will also go up. That charge recovers property tax charged to the utility for use of right of way and is remitted directly to municipality.

The fee cost the average residential property $6.91 per month in 2022, $11.75 in 2023 and is set to rise to $14.55 this year.

Actual fees billed are calculated based on usage, leading to varying amounts.

Carbon tax up in April

On April 1, the federal carbon levy charged on natural gas will rise from $65 to $80 per tonne, adding about 75 cents to a gigajoule of natural gas that would be charged at $4.

In Alberta, the carbon levy does not appear on power bills as power generators pay the provincial TIER levy on emissions and the cost is blended into the commodity prices.

SaskPower estimates the change will add 0.5 per cent to a residential user’s power bill, or about $5 for the year.

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