January 2017 News Archive

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City portion of energy bills to see slight increase

January 23, 2017 4:49 PM
(Red Deer, Alberta)

Red Deer residents will see a slight increase on the City portion of their electricity bills starting March 1, 2017.

Red Deer City Council approved three readings to the Electric Utility Bylaw amendment, which will see an increase of approximately $3.24 per month for typical residential customers.

The increase is a result of:

  • Delivery (wires): $0.19/month (includes provincial transmission costs & City distribution)
  • Balancing Pool: $2.70/month (due to Provincial increases)

  • Local Access Fee: $0.35/month (City increase)

Council has approved administration’s recommendation to raise the distribution tariff by 3 per cent. It also reflects a change to the Balancing Pool Allocation from a credit of $0.00336 per kWh to a charge of $0.00114 per kWh. This is the first time customers will see a charge instead of a credit as the result of the unknown impacts of the provincial carbon levy. 

Monthly distribution tariff charges – part of municipal delivery charges, not the retailer’s energy and billing charges - for typical residential customers in Red Deer are competitive with Edmonton, Calgary, Lethbridge, Airdrie and Grande Prairie.

The bylaw was approved in conjunction with the 2017 Operating Budget, approved on January 20.

The City must budget for and collect Red Deer customers’ share of the costs of building and maintaining the provincial transmission grid that delivers electricity to the city. Provincial transmission costs are established by the Alberta Electric System Operator (AESO) and approved by the Alberta Utilities Commission (AUC). The City has no jurisdiction over these costs but must ensure payment to the AESO.

For more information, please refer to our Q&A Backgrounder - Electricity rates go up (pdf)  or contact:

Jim Jorgensen
Manager, Electric Light & Power
The City of Red Deer
403-342-8274

Communications & Strategic Planning
The City of Red Deer
403-342-8147

 

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