Medicine Hat News

Utility rates going up next year

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Utility rates could rise an average of about $13 per month for the typical house next year, according to proposed rate updates presented to city council on Monday.

That increase would be about $3 less than initially proposed when two-year budget plans were endorsed in late 2016 for gas, power, water, sewer and garbage collection services.

The largest area of increase would be for power distributi­on fees, which would jump $5.30 a month in average cases.

That’s about $1.25 less than an expected increase, because the department is deferring some capital spending.

The largest reason behind the increase however, is higher debt repayment in the annual budget stemming from power-line constructi­on.

A sewer rate of $3.35 per month is up from estimated $1.33 when initial projection­s were made in late 2016. The reason being that a capital constructi­on plan was more costly than expected, said administra­tors.

Other business plans call for slight increases for gas resulting in 31 cents per month (scaled back from $2.21), water $1.55 per month (down from $2.91), and garbage collection 42 cents (up from 35 cents).

Actual costs will vary depending on usage. Price estimates are for residentia­l users. The effect on small to medium commercial customers is similar, but figures were not provided to media at Monday’s meeting.

The rates will be finalized at a Dec. 18 meeting in order to be in effect on Jan. 1.

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