City going will scaled-down version of fee

Medicine Hat city councillors approved a scaled-back MCAF fee in early July that would raise $1 million in revenue next year, increasing to $3 million in 2021 as rates rise to about onequarter what other cities charge. In 2022, the charge itself is to be re-examined as the city seeks ways to fill an budget gap that currently sits at $16 million annually.

The city’s utility department says the fee won’t be applied to out-of-town customers due to its nature, meaning regional customers won’t face stacked fees.

“MCAF won’t be stretching extend to our entire service area,” said Rochelle Pancoast, general manager of city utility business support. “The fee that council has approved will be applied only to customers in the municipality (of Medicine Hat).”

Redcliff town manager Arlos Croft tells the News the town doesn’t charge a franchise fee for either CMH gas or power lines that enter the town, but didn’t immediately know the reason why.

The City of Medicine Hat utility took over natural gas supply agreements in the town in 1986 by purchasing the town’s former publicly owned utility, known as Redgas.

The relationship however, has included some strife. In 2007, the town unsuccessfully sued the city utility stating its rate setting disadvantaged its residents compared to city dwellers.