The Future of Power in Medicine Hat

Medicine Hat – The City of Medicine Hat has confirmed there is no pending sale of the electric generation assets under consideration, and that any future possible sale would be subject to an appropriate consultation and approval process.

On January 12, 2021, the City announced an active exploration of strategic alternatives with electric generation assets (GENCO) in an ongoing effort to evaluate asset portfolios in terms of both opportunities and risk management in the rapidly evolving energy industry.

“The future of electricity generation, like any commodity business, is difficult to forecast, and the pace of technological change is also uncertain,” says Brad Maynes, Managing Director of Energy and Infrastructure. “The City of Medicine Hat will continue to evaluate the financial performance of this asset and consider its retention value as we do with our entire portfolio.”

Feedback from the community played a role in the decision to exclude any potential sale from the current strategic review, particularly since the opportunity for appropriate consultation and the authority of the current council are both limited by the fall election.

“As elected officials, our role is to continually monitor all asset performance and keep an eye on industry trends,” says Mayor Ted Clugston. “However, the current Council has only months left in their term and it’s evident that more time is needed to appropriately contemplate this decision.”

In the short-term, the City of Medicine Hat will continue its focus on building the next electricity generation unit, which is expected to break ground this spring. Longer-term, officials maintain the need for ongoing evaluation.

For more information on the future of power in Medicine Hat, visit https://shapeyourcity.medicinehat.ca/the-future-of-power.

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For further information, please contact:
Brad Maynes, Managing Director of Energy and Infrastructure
media@medicinehat.ca

Medicine Hat – The City of Medicine Hat, through its Energy & Utilities Division, continues to explore commercial opportunities to evolve its asset portfolio when economic advantages are evident.

Starting in 2017 with the Horizon disposition of all non-operated gas properties in Saskatchewan to the recently announced planned disposition of the city’s interest in the non-operated Glauc C oilfield, the city is executing on the strategic vision of its administrative and political leadership.

Recognizing similar opportunities within the electricity generation business, the City of Medicine Hat is actively sourcing strategic alternatives for its electric generation assets (GENCO).

“The strategic goal of this exercise is to decrease volatility in our commodity business by realizing the inherent value of our asset base and to subsequently reinvest the proceeds in a manner that delivers more predictable economic returns to the City,” says Brad Maynes, Commissioner of the city’s Energy and Utilities Division.

The city plans to retain its unique opportunity to continue in the energy business but in a more diverse and less volatile position that better reflects the evolving economics and supply of global energy.

“We want our ratepayers to know that any changes to how electricity is priced in Medicine Hat will be a strong consideration of any proposed transaction,” adds Maynes. “Furthermore, we would seek to partner with or sell to parties that would demonstrate the same attention to the environment, health and safety as we currently do and utilize the very qualified skillset of the current plant staffing compliment.”

The city’s transmission and distribution functions are not currently being considered for disposition.

The City of Medicine Hat will continue to update residents as this process unfolds and reminds the public and other interested parties that any such commercial transaction is subject to a rigorous municipal and regulatory process and approval.

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For further information, please contact:
Bradley Maynes, Commissioner Energy & Utilities
media@medicinehat.ca