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Red Deer City Council has set the date for a public hearing to gather feedback on whether a Municipally Controlled Corporation (MCC) should be established for the city’s electric utility.
The public hearing, scheduled for June 23, will give Red Deerians an opportunity to share their feedback on the future of the city’s electric operations.
The city has been reviewing options for modernizing the electric utility, with the goal of enhancing capacity, ensuring future economic sustainability, and adapting to evolving industry needs.
In July 2024, city administration was directed to determine the feasibility of transitioning the electric utility, including the distribution of electricity in Red Deer, to an MCC.
“For over a century, Red Deer has been in the business of providing essential utility services, like electricity, but as these industries continued to evolve, our governance and business models have remained largely unchanged,” said Tricia Hercina, Business Excellence Manager. “This Public Hearing is an opportunity for citizens to share their perspectives as we explore the potential benefits of a municipally controlled corporation and ensure a sustainable, modernized utility for the future.”
The city is currently working with a consultant to develop a business plan, financial analysis, and regulatory review to present a full picture of what it could mean for the city to transition to an MCC.
As part of the process, the business plan and education materials will be made publicly available to enhance understanding.
"Red Deer is just one of five municipalities in Alberta that operates their electric utility through a department model, and we’ve been doing so for over 100 years with little change in our business approach,” said Tara Lodewyk, City Manager. “It’s critical that we keep pace with industry changes and remain flexible and nimble in the ever-changing market. Exploring a Municipally Controlled Corporation allows us to keep our electric utility publicly owned while positioning it for long-term sustainability. We look forward to engaging the community in this important conversation and encourage everyone to take part in the public hearing process.”
As required by the Municipally Controlled Corporations Regulation, the following information will be provided at the public hearing:
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The services the corporation intends to provide,
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The names of the shareholders of the corporation
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The geographic locations in and outside Alberta in which the corporation intends to provide services
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In the case of a corporation that intends to provide utility services, a projected rate structure
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The market impact analysis contained in the business plan, if any.
Written submissions will be accepted until June 13.
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