Lunch-hour information session Friday centres on city’s utility business future

By Medicine Hat News on June 5, 2025.

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Hatters with questions about a potential incorporation of the city’s utility businesses can ask them in person this Friday at a noon-hour event, or take in an online Q&A session next week.

A 2024 third-party report suggests that focused, apolitical management under a corporate board could improve financial performance and the unit better navigate key issues like carbon compliance and expected low prices in years to come.

A public hearing will be held Tuesday, June 24, beginning at 4 p.m. at city hall.

On Friday, division officials will be at the Helen Beny Gibson Lounge in city hall to answer questions between 11 a.m. and 1 p.m.

A one-hour virtual session is also set for Wednesday, June 11 beginning at 5 p.m., and accessible from the city’s “shape your city” webpage (shapeyourcity.medicinehat.ca/mcc).

Administrators and consultants have said that a “skill-based” board would be able to act more quickly and avoid outside political pressures to take advantage of business opportunities or retool the business.

The City of Medicine Hat would be the sole shareholder, and be able to exert some high-level control, such as setting profit expectations and limiting operations to only the local franchise area, through a shareholders agreement.

Concurrently, a “Rate Review Committee” would be created and answer to council while verifying rates offered to city customers.

Distribution rates are set on a cost-plus-set-return model that mimics the provincially regulated rates certified by the Alberta Utility Commission.

Commodity rates are currently set at the average wholesale power rate on the Alberta market between a floor of 7 cents per kilowatt hour and ceiling of 11 cents. That however, is an interim rate formula brought in on default basis in late 2023.

Local natural gas rates are set at cost of contracting gas for resale plus a 7-cent per gigajoule markup.