City council to decide on future of electricity management in Red Deer
On Monday, July 22, 2024, city council will consider next steps for the future operation of the City of Red Deer’s electric utility.
The ask of city council on Monday is to seek direction on creating a transition plan and necessary supporting budget requirements for the establishment of a Municipally Controlled Corporation (MCC) as a means of exploring modernization of the City’s utility governance models.
A municipally controlled corporation (MCC) is described as an entity established and owned by a municipal government to provide specific services or undertake certain projects that are typically within the realm of municipal responsibilities. These corporations operate with a degree of autonomy but are ultimately accountable to the municipal government. The purpose of creating an MCC can vary, but common reasons include enhancing efficiency, providing specialized services, fostering economic development, and managing public assets.
“This is a necessary step in the process so we can fully understand the costs, processes and systems necessary if city council were to decide to proceed with an MCC for the City’s electric utility,” said Jim Jorgensen, utilities manager for the City of Red Deer. “Red Deer is, without question, in an enviable position of having ownership of critical systems and infrastructure that not all municipalities have retained. This has created ongoing benefits for our community and represents opportunities for the future. For the first 100 years, our structure and model has served our citizens very well, but the scope and pace of change over the past two decades is straining how we operate, and we must consider new ways of doing business.”