Medicine Hat council approves $33 million in utility relief

Every residential utility account holder in the city will receive a cost pressure relief payment of $400 on their bill for September 2023 and $200 in both October and November.

The initial recommendation from city staff called for three payments of $200 each. Council voted unanimously to double the first payment.

The payments will go to more than 32,459 customers at a total cost of about $26 million.

Relief will also go to 3,534 small and medium businesses, which will get a payment of $1,000 in September and $500 in both October and November. The cost of this relief initiative is approximately $6.1 million.

The payments will come into effect on the September 18 billing cycle.

Mayor Linnsie Clark said she is pleased that council was able to deliver the payments as soon as possible.

“There’s a lot of cost pressures on residents, so the best we can hope is that it does provide some assistance to help ends meet for people in our community, for business in our community, and I hope we’ve found the right balance,” said Clark.

Councillor Robert Dumanowski said the relief payments can create a level of certainty for citizens and produces a happy medium between costs to local ratepayers and making money on the utility.

He adds that the municipal-owned utility is the envy of everyone in the province and “we have a responsibility to ensure its future.”

VIDEO: Livestream of the citizen utility meeting

Councillor Alison Van Dyke said the amount of the relief package offered is unprecedented in the city’s history.

The city is also waiving disconnect fees, late fees and NSF fees that were charged to customers in the months of June to September.

Changes to how the city sets its rates won’t be as immediate.

City staff have been directed by council to deliver a draft utility bylaw amendment that establishes interim electricity rates based on “best of market” prices available in Alberta.

Clark said, “That’s what people are really looking for is some stability in their rates and knowing that Medicine Hat is giving them a good rate that’s good as compared as well to other competing energy providers in the province. We hope that that will be the solution at least on an interim basis that will provide residents with some of the financial security that they need.”

Staff members said they are working to prepare a draft bylaw as soon as possible.

The city will also initiate a third-party review of the energy business unit known as COMCO to ensure it is providing the best value for the community. A milestone check-in for that is set for the December 4 council meeting.

About 250 people crowded into council chambers for the start of the meeting.

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by Chris Brown

Medicine Hat council approves $33 million in utility relief

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