Residents, businesses zapped with power bill increases

Power bills are rising slightly for Red Deer residents, and a lot more for businesses, starting Jan. 1.

Power bills are rising slightly for Red Deer residents, and a lot more for businesses, starting Jan. 1.

On Monday, city council unanimously approved changes to the local distribution tariff, a fee that the Red Deer’s Electric Light and Power Department uses to recover its cost for running the utility system. Increases are also being made to the local access fee or franchise fee.

This is the third time in a year that Red Deer will have experienced power bill increases.

Residents on average will see charges increase $1.27 per month. Their provincial rebate will decrease to $2.48 a month from $4.04.

Small commercial customers, like a corner store, will see average increases on their monthly bill rise $3.95 a month. Their provincial rebate will similarly decrease to $8.28 a month from $13.46.

General service customers, like a fast food outlet, will experience an average increase of $35.18 on their monthly bill. The provincial rebate will dip to $103.50 from $168.25.

Large industrial/commercial customers on average will have their bills rise by $455 a month. The provincial rebate for them will slide to $1,656 from $2,692.

Department manager Ligong Gan said the changes in consumers’ bills in 2010 are due to several cost drivers.

For one thing, the department is experiencing a cost increase of $360,000 in running the system. This translates into a 1.2 per cent increase to the distribution tariff. The money collected from the distribution tariff increases will go back into the Electric Light and Power Department’s budget.

The higher power bills are also due to changes with the local access fee or franchise fee. The municipality charges this fee to the electric utility so it can use portions of the road, right-of-way and other city-owned properties and lands in its delivery of power. In turn, the electric utility passes the cost onto customers.

The current local access fee is set at 25 per cent to 31 per cent, a percentage used for the natural gas utility.

“This results in an increase in the local access fee to 3.7 per cent for the average household,” Gan said.

The increase in the fee will generate about $921,000 extra for general coffers.

ltester@bprda.wpengine.com

Just Posted

Scares and chills await at haunted house in Red Deer

Zed Haunted House helps raise money for Boys and Girls Club of Red Deer District

PHOTO: Renewable Energy Fair at Red Deer College

The Renewable Energy Fair and Workshops event was held at Red Deer… Continue reading

PHOTOS: Red Deer College Queens host third annual Pink in the Rink game

Queens raised $12,035 for the Central Alberta Cancer Centre.

PHOTOS: The Mustard Seed CEO speaks at Seeds of Hope Gala in Red Deer

The first-ever Seeds of Hope Gala was held at the Red Deer… Continue reading

Person airlifted to hospital after collision near Innisfail

One person was airlifted to hospital after a serious collision west of… Continue reading

WATCH: Make-A-Wish grants Star Wars loving teen’s wish

The Make-A-Wish Foundation granted Anakin Suerink’s wish in Red Deer Saturday afternoon

Turkey to reveal details of probe into Khashoggi’s killing

ISTANBUL — In a sign of growing pressure on Saudi Arabia, Turkey… Continue reading

Utah truck driver is jailed without bond after crash kills 6

HEBER, Utah — A man suspected of driving under the influence remained… Continue reading

A ragged, growing army of migrants resumes march toward US

TAPACHULA, Mexico — A ragged army of Honduran migrants streamed through southern… Continue reading

Postal workers to begin strikes in 4 Canadian cities Monday if deal not reached

OTTAWA — The union representing 50,000 Canada Post employees says it will… Continue reading

Migrant caravan swells to 5,000, resumes advance toward US

CIUDAD HIDALGO, Mexico — Despite Mexican efforts to stop them at the… Continue reading

“I don’t feel real”: Mental stress mounting after Michael

PANAMA CITY, Fla. — Amy Cross has a hard time explaining the… Continue reading

Toronto residents set to vote Monday on the next four years of civic leaders

Toronto’s municipal election campaign, marked by unprecedented provincial interference, ends Monday when… Continue reading

Former PQ minister Lise Payette remembered as role model for female politicians

MONTREAL — Members from across Quebec’s political spectrum gathered at a downtown… Continue reading

Most Read