Power bills to increase as of August 1

Power bills for Red Deerians will rise as of Aug. 1.

Power bills for Red Deerians will rise as of Aug. 1.

Red Deer city council approved on Monday the rate adjustments to the distribution tariff.

Administration reported the increase is necessary to recover the new provincial transmission charges, to be effective July 1, to deliver electricity to Red Deer customers.

The effect of the transmission rate increase is 11.8 per cent to the wires charge, or $3.75 per month, for an average household between August and December.

“Every customer is going to see a rate increase to their wires charge,” said department manager Ligong Gan outside council chambers.

Each month, the Electric Light and Power department pays to the Alberta Electric System Operator, the non-profit entity which plans and develops Alberta’s transmission system, a transmission charge and recovers this expense through the System Access Charge component in its distribution tariff.

Gan said that AESO is raising the transmission charge to consumers and businesses because of increased costs in running the provincial transmission grid.