By rdnewsNOW staff

modernize electric utility

Red Deer District Chamber concerned by potential implications of city’s MCC model

Jun 25, 2025 | 12:36 PM

The Red Deer District Chamber is concerned about the financial implications and longterm viability of Red Deer city council’s decision to approve the transition of the city’s electric utility to a Municipally Controlled Corporation (MCC).

Council came to the decision Tuesday morning following a public hearing.

The Chamber says it recognized the city’s intent to modernize governance and improve operational flexibility, but explained the MCC will have significant upfront and ongoing costs with a modest financial return expected.

The city will also be in competition with well established utility providers which raises questions by the Chamber on scale and cost-effectiveness.

“From the Chamber’s perspective, a full exploration of divestiture or strategic partnership opportunities may have presented stronger long-term benefits for residents, businesses, and the city’s fiscal position,” reads a Chamber statement in a media release. “That said, we are encouraged by council’s repeated assurances that this decision does not preclude future consideration of divestiture or partnerships.”

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The Chamber says it is also encouraged by council’s early conversations with potential partners at the public hearing.

“We are grateful to the citizens and Chamber members who took the time to engage in the public hearing process,” the Chamber added. “Their participation demonstrated the depth of interest and concern around this issue and reinforced the importance of bringing the voice of business to the council table.”

The city will begin implementation planning in the months ahead, including the development of the MCC’s governance framework and transition details. The electric utility will continue to operate under its current structure until the transition is complete.

As this moves forward, the Chamber urges council to closely monitor outcomes, maintain openness to new options, and remain accountable to residents and ratepayers.

“The Chamber will continue to advocate on behalf of our members and work collaboratively with the city to support long-term fiscal sustainability, efficient service delivery, and a strong economic future for Red Deer.”