Detailed implementation planning and project team setup were completed at the end of 2025. This stage focused on preparing the structure, resources and workplans needed to move into formal implementation.

This stage focuses on building the foundation for the MCC.

Following regulatory approval, electric utility operations will formally transfer to the Municipally Controlled Corporation. Governance responsibilities will shift to the MCC Board and executive team, with The City remaining the sole shareholder.

The MCC is currently anticipated to begin operating in early 2028, subject to the Alberta Utilities Commission process and other required regulatory approvals.

Highlights:

• Stage 2 implementation update presented to Council
• Additional financial analysis completed
• Internal project workstreams launched
• MCC implementation work continuing

Work continued on the implementation of the Electric Utility Municipally Controlled Corporation (MCC) throughout the first quarter of 2026.

In February, Administration provided Council with an update on Stage 2 of implementation, which focuses on governance development, regulatory preparation and transition planning. Following that update, Council requested additional financial and risk analysis related to governance options and divestment.

Administration returned to Council on March 10, 2026 with the requested information, including analysis related to costs, timing, risks and potential impacts to customers and employees. Following the discussion, there was no change to Council’s direction and work on the MCC implementation continues.

Implementation is now moving forward through several dedicated workstreams focused on areas such as governance, organizational design, operations, legal and regulatory requirements, transition planning and change management.

While Administration is focused on the detailed planning and operational work required to support implementation, Council is continuing to work through governance-related matters. This includes discussions related to the governance framework, the role of Council as shareholder and future Board structure.

Highlights:

Highlights:

• Interim operating model completed
• Governance development continued
• Preparation for organizational design underway
• MCC implementation work continuing

Work continued on the implementation of the MCC throughout the third quarter of 2026.

A significant project milestone was achieved with the completion of the interim operating model. This work documented how the Electric Utility currently operates and identified the services, processes, and relationships that connect the utility with departments across The City. The operating model will help inform future service agreements between The City and the MCC and support planning for Day 1 operations.

Council continued its work on the governance framework required to establish the MCC. This includes developing foundational governance documents and defining the future relationship between The City, as shareholder, and the corporation.

With the operating model complete, the project team has begun preparing for the next phase of implementation work. Upcoming activities include organizational design, which will examine the future structure, roles, responsibilities, and reporting relationships needed to support the MCC.

Implementation activities throughout the quarter remained focused on governance development, organizational planning, regulatory preparation, and transition readiness. The Electric Utility continues to operate as a City department while implementation work progresses.

There are no immediate changes to electric utility services.

The City of Red Deer has delivered electric utility services since 1926. Today, the utility serves more than 45,000 metered sites, manages 15 substations and delivers reliable electricity to residents and businesses across the community.

As the regulatory environment and infrastructure needs have evolved, Council undertook a governance review to ensure the utility is positioned for long-term sustainability, financial strength and regulatory compliance.

Establishing an MCC allows:

• Clear governance and accountability structures
• Alignment with provincial regulatory requirements
• Continued municipal ownership
• Strong oversight by Council as sole shareholder

The City of Red Deer will remain the sole shareholder of the corporation.

Nothing changes for customers at this time.

The City of Red Deer will remain the sole shareholder of the Municipally Controlled Corporation and the utility will continue to be publicly owned.

The MCC is currently anticipated to begin operating in early 2028, subject to the Alberta Utilities Commission process and other regulatory approvals.

Stage 2 focuses on the planning and preparation required to establish the MCC.

Current work includes governance development, organizational planning, regulatory preparation, and transition readiness activities.

A draft interim operating model has been completed to document how the Electric Utility currently operates and identify the relationships and services that will support future MCC operations.

The City is also continuing work on governance documents, board structure, financial planning, and regulatory requirements needed before operations can transfer to the MCC.