Public hearing on MCC — 4 p.m. today at city hall

By Medicine Hat News on June 24, 2025.

@MedicineHatNews

A hearing into the possibility of creating a municipally controlled corporation to house and manage most of the city’s energy division will take place this afternoon at city hall and could extend well into the evening.

Hatters will have up to 5 minutes each to outline their positions or concerns for council members in a session that will begin at 4 p.m. in council chambers.

Such a hearing is a requirement, and any decision on proceeding will need to be made at a subsequent meeting.

Last winter, consultant KPMG suggested moving the city’s power production business and power plant, as well as gas and power distribution lines, into a separate legal entity that would manage day-to-day affairs, propose rates and plan for capital work independently of council decision-making protocols.

Coupled with a “rate review committee,” managing and regulating the utility would be largely taken off council’s plate, freeing up focus for municipal matters, and potentially giving a more targeted effort to stabilize division profits in the future.

The meeting will likely begin with an overview of the proposal from energy division officials – similar presentations are available on the city’s “Shape Your City” website.

Along with general discussion, three formal submissions were received before a deadline last week and will be presented to council.

Big Marble Farms says its concern as a large industrial customer is the potential for rate increases, and suggests the rate review committee be installed prior to a decision on moving to an MCC.

“This is an extremely complicated time for any utility and business that is heavily reliant on utilities,” its submission reads.

Longtime former alderman Ken Sauer states he has long felt the complexities of the power and gas production division required particular attention that were likely outside the scope of expertise of typical council members. But he suggests caution.

“Setting up procedures for the electric production and distribution has provided stability and reliance, which it should be,” wrote Sauer, likening a potential “utility commission” to a police commission, which is distinct but related to council’s authority. “Dedication and research of bringing on new resources is evidently the direction the MCC should take.”

The Medicine Hat Utility Ratepayers Association has been highly critical of the division and municipal actions on a number of fronts.

It submitted nine positions.

“The MCC proposal represents a profound shift in how Medicine Hat’s energy assets are managed,” reads a statement from MHURA president Sou Boss. “While we recognize the city’s intent to modernize and improve performance, this cannot come at the cost of affordability, economic competitiveness, or democratic accountability.

“We urge council to slow down the process.”

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