MEDICINE HAT – The City of Medicine Hat has confirmed there is no pending sale of the electric generation assets under consideration, and that any future possible sale would be subject to an appropriate consultation and approval process.
On January 12, 2021, the City announced an active exploration of strategic alternatives with electric generation assets (GENCO) in an ongoing effort to evaluate asset portfolios in terms of both opportunities and risk management in the rapidly evolving energy industry.
“The future of electricity generation, like any commodity business, is difficult to forecast, and the pace of technological change is also uncertain,” says Brad Maynes, Managing Director of Energy and Infrastructure. “The City of Medicine Hat will continue to evaluate the financial performance of this asset and consider its retention value as we do with our entire portfolio.”
Feedback from the community played a role in the decision to exclude any potential sale from the current strategic review, particularly since the opportunity for appropriate consultation and the authority of the current council are both limited by the fall election.
“As elected officials, our role is to continually monitor all asset performance and keep an eye on industry trends,” says Mayor Ted Clugston. “However, the current Council has only months left in their term and it’s evident that more time is needed to appropriately contemplate this decision.”
In the short-term, the City of Medicine Hat will continue its focus on building the next electricity generation unit, which is expected to break ground this spring. Longer-term, officials maintain the need for ongoing evaluation.