Electric Utility Modernization

Electric Utility Modernization Project

Overview

Since 2022, The City of Red Deer has ben hard at work finding the best way to invest in our electrical infrastructure to keep pace with industry growth and to ensure long-term sustainability, reliability and economic benefit for future generations. 

We are currently exploring the option of transitioning our Electric Utility, which includes the distribution of electricity to homes and business in Red Deer, to a City-owned Municipally Controlled Corporation. 

Why are you considering this change?

Did you know that The City has been providing electricity services to the community for almost 100 years? We’ve grown and adapted, but our governance and business model has remained largely unchanged. As the industry evolves and regulatory requirements shift, our current model limits our ability to react, respond, innovate and plan for the future. This review is meant to explore options that will allow us to continue providing reliable, cost-effective services while ensuring long-term sustainability.  

Modernizing our Electric Utility will: 

  • Enhance decision-making with access to better tools and data
  • Increase agility to respond to challenges and opportunities
  • Strengthen access to capital
  • Attract and retain skilled staff
  • Offer flexible solutions to meet evolving needs
  • Overcome current system limitations
  • Enable strategic infrastructure investment for growth 
What is an MCC?

An MCC is a corporation that is owned by a municipality to provide specific services or functions that benefit the municipality and its residents, while operating at arm’s length from municipal administration.  

It’s a way to keep electricity public while creating more opportunities to plan to plan for  the future, support growth, and continue making decisions that benefit the community.  

Creating an MCC is one way to meet Council’s goals for utility services – keeping them reliable, responsive, affordable, marketable, adaptable, and financially beneficial. In the case of the Electric Utility, the benefits are: 

  • The City remains in control 
  • Stronger oversight and expertise 
  • Stronger financial options 
  • A stronger focus on service 
  • More opportunities for innovation 
  • Sustainability for future generations 
Understanding the process
  • A decision has not been made yet. In June 2024, Council provided direction to explore the possibility of transitioning the Electric Utility to a City-owned Municipally Controlled Corporation (MCC). 
  • This project is only exploring the possibility of transitioning to an MCC; while our initial scoping study identified three options – divest, MCC and Department+ (enhanced municipal service delivery), City Council provided direction to explore the possibility of transitioning to an MCC.  
  • We are currently developing a business plan, financial analysis and regulatory review to present a full picture of what it could mean for The City to transition to an MCC. On May 22, a business plan and business case will be available for the public to review.  
  • A public hearing will be held on June 23, 2025, to provide an opportunity for citizens and other interested parties to provide their feedback on the MCC prior to Council making a decision. Learn how you can participate in the public hearing here.  

For more information, see our Electric Utility FAQ (pdf).

If you have questions about the Utilities Governance project, please email utilitiesgovernanceinfo@reddeer.ca. 

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Get Involved

Attend an open house or learn more about participating in the Public Hearing.