Energy division officials with the City of Medicine Hat are being asked by council to speed up analysis on a third-party review in order for debate to occur sooner than later.--NEWS FILE PHOTO
@MedicineHatNews
A “tight” turnaround just got tighter for city energy officials asked to provide analysis on a report that proposes creating of an arm’s length corporation to run the power utility.
The third-party report from business consulting firm KPMG was presented to council and the public on Nov. 25, where council voted for division staff to bring analysis back to council by Monday, Dec. 9.
Now, a special meeting of council has been called for Thursday to have top energy, land and environment staff discuss the report’s findings and suggestions.
Coun. Darren Hirsch pushed to hold a followup meeting in short order after the report detailed that power plant operations could operate apolitically from council, potentially improving results in the face of falling revenue and increased capital requirements.
“I feel postponing this for a month and a half (into January), my concern is that the fever for having this discussion would be lost,” he told council Nov. 25. “Having a meeting and a recommendation gets us to a step to see what that looks like. There’s nothing concrete … but this is the next natural step.”
Mayor Linnsie Clark opposed the motion, stating the schedule sets up a situation where council would take up the issue between the introduction of the 2025-26 budget, with occurred Monday, and the final budget debate and passage on Dec. 16.
“I think it’s too short and I very much doubt the fever of this issue will go down over time,” said Clark.
City manager Ann Mitchell said top division officials could meet the deadline, stated as Dec. 9, in the meeting.
Coun. Ramona Robins said it would be better to get the staff’s reaction and advice on the issue before the public begins to speculate on the third-party review.
“The short timeline, to me, makes sense, so the public can know earlier, rather than later, what city administration recommends,” she told council on Nov. 25. “That’s not necessarily what city council is going to do, at least without public input.”
The report provides three options, but discourages the potential for an outright sale, though stresses the need to shut down or divest the city’s remaining 500 natural gas production wells.
Unranked, they are maintaining status quo with the energy division as a city department, creating an independent rate review board to certify prices charged to consumers, or creating and operating a municipally controlled corporation for the municipal power plant and gas and power distribution companies.
It also suggests the Medicine Hat power complex could be challenged to beat rates of power generally available off the Alberta grid for periods of low-demand over the next several years.
Local officials said much of the same things in division budget presentations earlier this fall, and like the KPMG report suggests, are already determining if greater imports may be financially advantageous.
