Detailed implementation planning and project team setup were completed at the end of 2025. This stage focused on preparing the structure, resources and workplans needed to move into formal implementation.

This stage focuses on building the foundation for the MCC. Work includes:

• Developing core corporate governance documents such as bylaws and a Unanimous Shareholders Agreement
• Defining board structure, responsibilities and accountability
• Preparing and submitting applications to the Alberta Utilities Commission and other regulatory bodies
• Completing financial, organizational and operational planning
• Developing transition plans to ensure continuity of service

Stage 2 will continue through the regulatory review process.

Following regulatory approval, electric utility operations will formally transfer to the Municipally Controlled Corporation. Governance responsibilities will shift to the MCC Board and executive team, with The City remaining the sole shareholder.

The MCC is currently anticipated to begin operating in early 2028, subject to the Alberta Utilities Commission process and other required regulatory approvals.

Highlights:

• Stage 2 implementation update presented to Council
• Additional financial analysis completed
• Internal project workstreams launched
• MCC implementation work continuing

Work continued on the implementation of the Electric Utility Municipally Controlled Corporation (MCC) throughout the first quarter of 2026.

In February, Administration provided Council with an update on Stage 2 of implementation, which focuses on governance development, regulatory preparation and transition planning. Following that update, Council requested additional financial and risk analysis related to governance options and divestment.

Administration returned to Council on March 10, 2026 with the requested information, including analysis related to costs, timing, risks and potential impacts to customers and employees. Following the discussion, there was no change to Council’s direction and work on the MCC implementation continues.

Implementation is now moving forward through several dedicated workstreams focused on areas such as governance, organizational design, operations, legal and regulatory requirements, transition planning and change management.

While Administration is focused on the detailed planning and operational work required to support implementation, Council is continuing to work through governance-related matters. This includes discussions related to the governance framework, the role of Council as shareholder and future Board structure.

There are no immediate changes to electric utility services.

The Electric Utility department will continue operating as a City department throughout Stage 2. Customers will continue to receive the same reliable service.

Any future operational transition will occur only after regulatory approval and careful transition planning.

The City of Red Deer has delivered electric utility services since 1926. Today, the utility serves more than 45,000 metered sites, manages 15 substations and delivers reliable electricity to residents and businesses across the community.

As the regulatory environment and infrastructure needs have evolved, Council undertook a governance review to ensure the utility is positioned for long-term sustainability, financial strength and regulatory compliance.

Establishing an MCC allows:

• Clear governance and accountability structures
• Alignment with provincial regulatory requirements
• Continued municipal ownership
• Strong oversight by Council as sole shareholder

The City of Red Deer will remain the sole shareholder of the corporation.

Nothing changes for customers at this time. Electric Light and Power continues to operate as a City department.

The City of Red Deer will remain the sole shareholder of the Municipally Controlled Corporation.

The MCC is currently anticipated to begin operating in early 2028, subject to the Alberta Utilities Commission process and other regulatory approvals.

The City is developing governance documents, defining board structure, completing financial planning and preparing regulatory applications required before operations can transfer.