As Red Deer’s electric utility approaches its 100-year milestone, the City is taking a hard look at how best to evolve for the next century.
The City’s Electric Utility, historically managed as a municipal department, faces increasing challenges and demands, from aging infrastructure to the rise of electrification and data-driven industries.
To better meet these challenges, The City of Red Deer is exploring the creation of a Municipally Controlled Corporation (MCC), an option that could offer greater flexibility to ensure long-term sustainability, reliability and economic benefit for future generations.
“We’ve been a city department for nearly 100 years, but the world has changed dramatically in that time. It’s clear that we need to modernize,” says Jim Jorgenson, Utilities Manager for The City of Red Deer. “From electric vehicles to cloud computing and AI infrastructure, our grid needs to support new technologies and growing industries. The question is, how do we best position Red Deer to meet these challenges in the future?”
Three governance options were considered in the early stages of the project: remain a city department, form a Municipally Controlled Corporation, or exit the utility business altogether. After reviewing these options, The City has chosen to explore the MCC route, following the lead of other Alberta cities like Calgary (with its Enmax Corporation) and Edmonton (with EPCOR). This structure allows The City to maintain ownership while enabling a more flexible, business-minded approach to utility management.
The Municipally Controlled Corporation would provide the Electric Utility with increased autonomy through direct control over infrastructure investments and operations. This is especially crucial as significant investments are needed to upgrade infrastructure, plan for the future and support growth. The goal is to balance the interests of ratepayers, The City as the owner, and the long-term viability of the Utility.
As required by provincial legislation, the MCC business plan is now available on The City’s website for the public to review in advance of a Council decision. It outlines key components of a possible transition, including projected rate structure, market impact analysis, and costs and risks.
Public education and engagement is a key part of this process. Leading up to a critical Public Hearing on June 23, residents are invited to attend a series of information sessions starting May 29 to learn more about the project and how they can provide feedback through the Public Hearing process.
A mandatory Public Hearing will occur on June 23, 5 p.m. at City Hall to allow Council to hear directly from citizens and other interested parties before they decide whether to move forward with the MCC. To learn how to submit written comments (due June 13) or how to speak in person at the Public Hearing, visit reddeer.ca/PublicHearing.
The City is committed to ensuring that its utility infrastructure is well-positioned to support growth, innovation, and sustainability for generations to come. The creation of a Municipally Controlled Corporation offers a promising path forward, one that could provide the flexibility and investment needed to meet the challenges of tomorrow.