NEWS FILE PHOTO
In August, city councillors are expected to make a decision to adopt changes to the city's Electrical Utility Bylaw that would add a two-month grace period for small commercial accounts and increase transparency amongst ratepayers.
bmiller@medicinehatnews.com
Soon it may be more clear for small and medium-sized businesses in Medicine Hat to become aware if they have exceeded or branched their kilowatt per hour limit as the City looks to increase awareness and education across its customer rate base.
Staff provided members of the Energy, Land and Environment committee a report during a public meeting at City Hall Thursday, that looks to provide more communication options to ratepayers and clearly defines a two-month grace period.
Through concerns expressed from several members of the community, City staff have developed a new process that will be automatically triggered if electrical usage exceeds either 5,000 kWh in a monthly cycle or the demand greater than 25 kVA as measured at the billing meter.
“Those concerns have been considered as defining the reclassification process,” said Jasmin Gross, business analyst, energy marketing and business analysis.
“Customer notification, awareness and education are part of this process and will be enhanced, that’s the goal.”
This means ratepayers who are enrolled with eUtility would automatically receive a notification via email indicating which power limit has been breached, consumption and demand history as well as which account will be placed under a new two-month grace period.
Customers not enrolled with the city’s online service would receive a letter in the mail.
This two consecutive month grace period would begin following the billing cycle of the initial breach, totally a billing cycle that consists of a three-month period.
If adopted, businesses would be granted one grace period per year, moving forward the period would reset 12 months after any prior periods have expired.
According to city staff, the formal rate reclassification process as well as the defined grace period aligns with other provincial jurisdiction and will increase transparency amongst ratepayers.
“It should allow customers to make informed decisions,” said Gross.
Additionally staff believe the new process is more fair to taxpayers than in communities including Lethbridge and Red Deer because rate changes will not occur immediately, or at all, within a grace period.
“In summary, it does balance the need for equitable treatment amongst the rate base, as well as ensuring reasonable cost recovery of the utility,” said Gross.
One drawback to the process, is a rare occasion where a ratepayer’s account could be newly re-classified due to infrequent breaches in the past.
“There may be some accounts, and really probably less than one per cent that are newly reclassified,” explains Gross.
In these circumstances, the city would look at those accounts individually.
If the city implements the new amendments to the Electric Utility Bylaw, changes are expected to roll out by the third quarter of the year and new educational materials will be updated on the city’s website to explain the formal rate reclassification process.
The city is also looking into the allocation of costs for electrical transformer upgrades that include non-cost conditions such as load shed devices or load limiters.
Additionally the city is also considering adopting incentives or programs to help customers manage their electric demand.
Council is expected to make a decision to adapt any changes to the utility bylaw during its Aug. 18 public meeting.
