Low Costs, Big Growth: Medicine Hat's Competitive Advantage

The City of Medicine Hat's current multi-phased approach, while a solid start, is fundamentally insufficient to unlock the full economic potential of a major airport. A "Masterplan" is a great initial step, but a 20-year vision is too slow. A major airport is not a convenience; it's a catalyst for economic transformation.

• The Opportunity: Medicine Hat is at a critical juncture. We have a unique chance to transform our regional airport from a municipal asset into a powerful economic engine for the entire region. The current approach, defined by master plans and feasibility studies, is prudent but carries a fundamental weakness: a cautious, "wait-and-see" stance. This creates a paradox where key partners—airlines, federal and provincial governments, and private investors—are hesitant to commit until we do. This is a classic "chicken and egg" problem that could delay our progress indefinitely.

• Accelerated Infrastructure & Connectivity: We must expedite the process to fund and break ground on a new, longer runway capable of accommodating larger cargo and commercial jets. Unlock the potential for direct, long-haul flights to major hubs like Toronto, Seattle, or international destinations, which are currently unfeasible.

• The Strategic Imperative: To be a city that others want to invest in, we must first become a city that is willing to invest in itself. This means moving beyond passive planning and signaling a clear, responsible, and proactive commitment to our future. We need to demonstrate that we are not just a city of potential, but a city in motion. 

The Medicine Hat Advantage is one of our city’s greatest legacies. For years, we've run our own profitable utility companies, with their earnings flowing directly back to our citizens.

However, as of 2025, our control over these resources is diminishing. The decline in natural gas reserves has led to the formation of a city hall committee tasked with the sale of our remaining assets. We are therefore compelled to consider what lies ahead for our energy sector and how we can secure the Medicine Hat Advantage for the future. The solution, I believe, is already taking shape, and it’s time to go all in.

The Solar Shift: Building a Resilient Economy 

• Carbon Levy's Financial Impact: The city's carbon compliance costs for energy production are projected to increase from $8.5 million in 2023 to an estimated $30 million by 2030. This significant financial drain on the city's budget, driven by the rising federal carbon levy, will directly impact the cost of utilities for residents and businesses.

• Financial Stability: Transitioning to solar power will stabilize utility rates and lower costs for residents and businesses by reducing exposure to fluctuating natural gas prices and increasing carbon taxes. The city can also turn underused land into an asset and leverage federal tax credits and provincial grants to make the project more financially viable. The Clean Economy Investment tax credit and Emissions Reduction Alberta provincial grant could combine to cover up to 60% of project costs.

• Economic Diversification: A stable, low-cost energy supply will attract high-value industries that rely on consistent and affordable power, like data centers, precision agriculture and aerospace. This strategic shift will create new, high-paying jobs and position the city as a leader in the energy sector, providing a resource we can sell to the Alberta Power Pool at a profit. Therefore removing justification for increasing property taxes. 

 A Framework for Project Success: Finance, Compliance, & Community 

• Approval and Phasing: Approve the initial capital budget of ~$115–135M for the first 75 MW phase. This will be financed by a phased investment plan to avoid a high upfront cost, with costs further mitigated by securing grants, tax incentives, and long-term Power Purchase Agreements (PPAs) with local industries and institutions. Explore partnerships with Indigenous communities to access additional federal funding and allow for expansion based on future demand and electricity prices. 

• Regulatory Compliance: Direct staff to adhere to all Alberta Utilities Commission (AUC) timelines, including the current 2027 full build-out deadline. File any necessary amendments for project downsizing or phasing to ensure approvals do not lapse.

• Local Infrastructure: Approve critical infrastructure upgrades, including new substations and transmission lines, to ensure power from the solar park can be seamlessly integrated into the city's grid. Additionally, consider a battery storage pilot project to enhance grid reliability and manage peak demand.

• Risk Management & Community: Develop a comprehensive strategy for public engagement, policy integration, and risk management. Proactively address community concerns to maintain trust and prevent delays, while also establishing a long-term energy transition plan, a clear risk management strategy, and a ratepayer protection framework.