Now is the time for feedback on the exploration of an MCC

To be or not to be, that is the question? Medicine Hat’s energy business has been central to its identity since the early 1900s, providing employment, affordable and reliable services, and a steady source of municipal revenue. Its success epitomizes the City’s strength, independence and ingenuity, and is a significant source of community pride.

However, the conditions under which the energy business flourished are changing with local natural gas production declining, Alberta’s electricity market undergoing significant reforms and the transition to a low-carbon economy and changing regulations, all of which impact the City’s ability to economically generate electricity with its natural gas units. With changing market conditions and increasing rates, it was prudent for the City to look at its business model, a move that the Chamber commended in our letter of October 2023, asking for further conversations and consultation regarding the future of the utility and to gain greater clarity on future direction.

The City engaged KPMG and they chose to evaluate three models after considering the energy business's current state and outlook:

1. Status quo
2. Municipally Controlled Corporation (MCC)
3. Divestiture

The resulting recommendation was to pursue a Municipally Controlled Corporation. After information was presented and the decision to host a public hearing was made, the Chamber of Commerce provided an opportunity for our members to connect with the energy team (Managing Director Rochelle Pancoast, Director Travis Tuchscherer, Solicitor Matthew Klasen, Director Lola Barta) at a members-only information session on Monday, June 9, from 4-6 p.m. at the Esplanade Arts and Heritage Centre.

We encouraged members to prepare for the information session, by watching the one-hour long segment from the presentation on May 20 to City Council where the project team outlined the Municipally Controlled Corporation business structure, value proposition, Rate Review Committee structure, unanimous shareholder agreement, and the process for the MCC proposal. We also encouraged our members to view further information and the governance model proposal by visiting medicinehat.ca/mcc. The Chamber wished to host an option for a members’-only event so their members could ask questions, hear from other Chamber members and hear responses to those questions, while also recognizing that there were opportunities for public participation on June 6^th and with an additional opportunity on June 11, along with the Q&A tool on Shape Your City: https://shapeyourcity.medicinehat.ca/mcc.

Once individuals have had a chance to research the information and ask their questions through the various methods of engagement, they are invited to share their feedback on whether they are for or against the proposed model through submissions to City Council by Tuesday, June 17 at 12:00 pm by emailing their submission to clerk@medicinehat.ca or by presenting at the public hearing on Tuesday, June 24 at 4:00 pm in City Council Chambers.

Shakespeare’s famous soliloquy from Hamlet — “To be, or not to be: that is the question” — explores the existential dilemma of action versus inaction, survival versus surrender. This philosophical tension can be meaningfully applied to the energy business, especially in times of transition or uncertainty.