Red Deer District Chamber has issued a statement on the governance model decision made by council regarding the city's electrical utility. The city will transition to a municipally controlled corporation (MCC) model.
The Red Deer District Chamber remains measured in our expectations but committed to engaging constructively as council proceeds with the municipally controlled corporation (MCC) model for Red Deer’s electric utility. While we recognize the intent to modernize governance and improve operational flexibility, we continue to hold concerns about the financial implications and long-term viability of this approach.
The MCC model introduces significant upfront and ongoing costs, with only a modest financial return projected. It also places the city in direct competition with established, regulated utility providers — raising important questions about scale, innovation and cost-effectiveness. From the chamber’s perspective, a full exploration of divestiture or strategic partnership opportunities may have presented stronger long-term benefits for residents, businesses and the city’s fiscal position.
That said, we are encouraged by council’s repeated assurances that this decision does not preclude future consideration of divestiture or partnerships. We were pleased to see early conversations begin with potential partners, such as Fortis Alberta, during the public hearing process, and we encourage council to continue exploring these opportunities in a transparent and forward-looking manner.
We are grateful to the citizens and chamber members who took the time to engage in the public hearing process. Their participation demonstrated the depth of interest and concern around this issue and reinforced the importance of bringing the voice of business to the council table. As Red Deer’s business community continues to grow and diversify, so too must the opportunities for constructive dialogue between council and the entrepreneurs, employers and investors who drive our local economy. The chamber is committed to facilitating more of these critical collisions — where perspectives meet, ideas are shared, and better decisions are made for our community.
As implementation proceeds, we urge council to closely monitor outcomes, maintain openness to new options, and remain accountable to residents and ratepayers. The chamber will continue to advocate on behalf of our members and work collaboratively with the city to support long-term fiscal sustainability, efficient service delivery and a strong economic future for Red Deer.
With information from Red Deer District Chamber.
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