Red Deer District Chamber Urges Public Participation in Electric Utility Governance Public Hearing

 
Red Deer, AB – [June 9, 2025] – The Red Deer District Chamber is calling on citizens to participate in the upcoming June 23 Public Hearing regarding the City’s electric utility governance and urges City Council to thoroughly explore all governance options for the City's electric utility, including full divestiture, prior to proceeding with the proposed Municipally Controlled Corporation (MCC) model.
 
As municipalities are entrusted with delivering core services such as roads, water, and emergency services under the Municipal Government Act, the Chamber believes that operating a utility through an MCC - an extension beyond these core functions -may create unnecessary competition with established private businesses already regulated by the Alberta Utilities Commission.
 
While The City’s goals of modernizing utility governance and improving financial flexibility are commendable, the Chamber remains concerned that the MCC model, as outlined in the City’s public business plan, may result in significant financial burdens. The plan includes a $4.1 million setup cost and a gradual increase of $3 million in operating and maintenance costs by 2027. This model, which has been touted as having only a mild financial impact, could place undue strain on the City's finances without delivering the necessary financial impact for long-term sustainability. In contrast, divestiture offers an opportunity for a one-time capital injection that could reduce debt, reinvest in critical infrastructure, and support economic development, all without raising taxes on local businesses or residents.
 
The Chamber emphasizes the importance of exploring all viable options, including divestiture, to determine the most financially and operationally sustainable path forward. Currently, there are concerns that The City has not fully examined these alternatives, particularly given the lack of publicly available details on the evaluation process or discussions with private utilities.
 
Lastly, the Chamber calls for a clearer explanation of how governance and oversight will function under the MCC model. With Red Deer City Council still responsible for setting rates, it remains unclear whether the MCC will address the operational and financial challenges currently faced by the City’s utility services.
 
"The Red Deer District Chamber supports the City’s efforts to improve the sustainability of utility governance," said Scott Robinson, CEO of the Red Deer District Chamber, "however, we believe that full divestiture or partnering with an experienced utility operator should be thoroughly explored as more scalable, efficient, and lower-risk solutions."
 
The Chamber urges City Council to ensure that all governance options are carefully considered, and that the public is provided with all necessary information to assess the long-term financial and operational implications of each option. By doing so, The City can ensure the best interests of ratepayers are served and position Red Deer for long-term economic success.