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Governance options

Red Deer District Chamber of Commerce urging city to consider all options for electric utility

Jun 9, 2025 | 4:59 PM

The Red Deer District Chamber of Commerce is urging the City of Red Deer to explore all governance options for the city’s electric utility before moving forward with the proposed Municipally Controlled Corporation (MCC) model.

The Chamber is also alerting the public to participate in the upcoming public hearing on June 23 where they’ll discuss the electric utility governance.

“The Red Deer District Chamber supports the City’s efforts to improve the sustainability of utility governance,” said Scott Robinson, CEO of the Red Deer District Chamber, in a media release. “However, we believe that full divestiture or partnering with an experienced utility operator should be thoroughly explored as more scalable, efficient, and lower risk solutions.”

The Chamber says operating a utility through the MCC may create unnecessary competition with private business already regulated by the Alberta Utilities Commission.

Furthermore, the Chamber believes the MCC model, outlined in the city’s business plan, could result in significant financial burdens.

The plan includes a $4.1 million set up cost and an increase of $3 million in operating and maintenance cost by 2027.

The Chamber claims the model will place a strain on the city’s finances. Meantime, divestiture offers an opportunity for a one-time capital injection that could reduce debt, reinvest in critical infrastructure, and support economic development without raising taxes on local businesses or residents.

The Chamber is concerned the city hasn’t fully explored alternatives and is calling for a clearer explanation of how governance and oversight will function under an MCC model.

By considering all governance options, the chamber says the city can ensure the best interests of ratepayers are served and position Red Deer for long-term economic success.