City council approved several changes to the 2026 budget Monday evening, including an approximate $3 increase per month for residential utility rate payers.--NEWS PHOTO BRENDAN MILLER
bmiller@medicinehatnews.com
Councillors on Monday unanimously approved changes to the Utility Rate Bylaw, Energy Production Budgets and Land and Real Estate Budget, adding about $3 to monthly bills.
Together the amendments approved in one motion include:
– 2026 utility distribution system operating revenue and expenditure budget amendments;
– 2026 utility distribution system capital budget amendments;
– 2026 electric generation operating revenue and expenditure budget amendments;
– 2026 electric generation capital budget amendments;
– 2026 natural gas production operating revenue and expenditure budget amendments;
– 2026 operating intangible capital asset budgets for the land and real estate department.
Changes to the 2026 gas and electric utility rates will affect customers differently by class, however the average residential monthly bill will experience a year over year increase of $3.06.
The increase includes $2.25 for electric utility services and $0.81 for gas utility services.
Small and large commercial customers will also experience an increase of approximately three to four percent in 2026.
Coun. Bill Cocks, who also sits on the Energy, Land and Environment Committee, said staff and council are aware of financial hardships facing many residents and says council is not “glibly” approving increases.
“I think these budget amendments are necessary and really are not substantial enough to cause us to delay this any further,” said Cocks. “And I think that ultimately the impact on rates is already determined. Most of these expenses are incurred, we are bringing the budget into alignment with the costs that are now projected for completion of projects previously approved.”
Staff say the increase in rates is due to a combination of factors and cite increases to projected capital budget assumptions, which have already been approved, as well as the Alberta Utilities Commission regulated return on equity, which changed from 9.28 per cent to 8.97 per cent.
Another factor increasing rates is the addition of a new substation in the southwest portion of the city that was not anticipated at the time the 2026 budget was originally proposed.
Budget amendments include the approval of an additional $16,000 to build the substation due to a new site location and the AUC compliance requirements, which include additional siting considerations, land acquisition and enhancing public participation and feedback processes.
At the time, council approved the new substation as part of the 2022-23 Utilities Distribution Systems business plan at a cost of $24,000. With the new changes the project will now cost $40,000.
Staff also say the city experienced an overall net reduction among ratepayers, likely due to increased customer awareness and enhanced public messaging on energy efficiency.
Council also approved changes to the procedure bylaw in the following motion, readjusting the start time of regular public meetings back to 6:30 p.m., and appointed Mayor Linnsie Clark as an ex-officio member to any standing committee to attend at her discretion.
