Red Deer City Council will review the proposed 2026 Utilities Budget during the first week of September.
The budget sets operating and capital plans for the city’s self-funded utilities, including electric, water, wastewater and waste management.
The proposal outlines utility rate adjustments in 2026 to address rising operating costs, aging infrastructure and long-term financial sustainability.
For an average household, the proposed changes include:
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Electric utility: +6% (about $3.85 more per month for 600 kWh use).
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Water utility – treatment and distribution: +5% (about $2.48 more per month for 17 m³ use).
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Wastewater treatment and collection: No change. Rates will remain at 2025 levels while a third-party review of financial and rate models is conducted.
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Waste management: Landfill +5.5%, collection +5% (applies to black and green carts; blue cart services are now funded under Extended Producer Responsibility legislation).
“These are essential services that every household and business in our community relies on every single day,” said Sarah Tittemore, general manager of community services.
To strengthen transparency and accountability, the city will launch a third-party review of utility financial and rate models.
The process will begin with wastewater in late 2025, followed by water.
“This review will validate our rate models and ensure they are transparent, equitable and sustainable,” Tittemore said. “It’s about building confidence and trust, both with our residents and our regional partners.”
The city also provides water and wastewater services to several regional commissions and municipalities across Central Alberta.
Over the past 18 months, administration has worked closely with regional providers through meetings, reports and data sharing.
The third-party review will further support transparency and collaboration.
Red Deer’s utilities are self-funded and not supported by property taxes.
All revenues collected from rates go directly into maintaining and improving the systems that deliver these services.
If approved by council in early September, updated utility bylaws will return September 15 for final rate approvals.
**With information from the City of Red Deer
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