OLDS — Electrical distribution charges are unfairly “squeezing” rural residents and businesses more than urban ones, Coun. Darren Wilson says.
His fellow council members agree. So during their Nov. 12 meeting, they accepted a notice of motion from Wilson on the matter.
It called on Brent Williams, the town’s chief administrative officer, to draft a letter to be signed by mayor Judy Dahl
The letter will include complaints about the disparity in electrical distribution charges between rural and urban customers and urge Affordability and Utilities Nathan Neudorf to address that problem.
Wilson said the disparity in electrical distribution charges between rural and urban customers has been “a hot topic” for years. He describes rural as anything outside the major urban centres such as Calgary and Lethbridge.
He said to his knowledge, as far back as 2023, Premier Danielle Smith’s mandate letter to Neudorf touched on the issue.
Wilson said minor “tweaks” have been made, such as moving from the regulated rate option to the rate of last resort.
“But really, I’m sure as most people know, when you look at your utility statements for electrical charges, the cost of the commodity relative to the cost of the grid charges, the transmission and distribution charges, (are) quite small,” he said.
“It is the distribution charges that are squeezing residents and businesses.
“And specifically rural residents, rural businesses pay an unfair share of those costs, relative to the urban markets.
“So this would just look to redistribute those costs if not perhaps all Albertans, and certainly improve affordability and improve competitiveness for our businesses.”
Mayor Judy Dahl, as well as councillors Heather Ryan and Wanda Blatz agreed it has been a big issue, both at the Alberta Munis convention which represents urban councils as well as during the Rural Municipalities of Alberta convention.
“It’s something that’s a pressing issue for rural Alberta. I believe the minister even responded during a session up there that he was looking into this,” Ryan said.
She said because the two organizations noted above addressed the issue it’s nothing new, but “I think any letter that we provide is continuing to show our support for this kind of advocacy.”
Thus, Ryan said, she supported “going forward” with the letter.
Blatz agreed.
“It is something that I believe the ministry does need to be aware of and follow-up letters certainly are that process,” she said.
