A new provincial bill offers loans to Alberta utility corporations to cover a mass of utility payment deferrals resulting from COVID-19.
Alberta electricity and natural gas providers can now borrow money to cover the costs of their customers deferring payments.
On Wednesday, Morinville-St. Albert UCP MLA Dale Nally, who is also the associate minister for natural gas and electricity, introduced Bill 14, the Utility Payment Deferral Program Act. The bill allows for utility corporations to borrow up to $119 million through loans, while an additional $104 million has been provided by the government.
“Our government appreciates the co-operation and flexibility shown by utility providers to help their fellow Albertans through these challenging times. We recognize industry has also been greatly impacted by COVID-19. Safe and reliable electricity is critical to Alberta’s pandemic response, and the Utility Payment Deferral Program Act will provide temporary financial support necessary to implement the program,” Nally said.
The government estimates utilities, including the Alberta Electric System Operator, will defer about $114 million.
The bill expects utility corporations will be able to pay back their loans over the next year as customers start paying their bills again and any outstanding amounts that will remain at the end of the year period will be collected through rate riders.
In March, the government announced utility customers could defer their payments for 90 days until June 18 and companies were prohibited from shutting off customer services at that time. Any eligible residential, farm and small commercial customers can do so by contacting their utility provider.
Nally's bill outlines the repayment criteria for those who defer, with repayment options in equal monthly instalments, starting when the program ends on June 18, or through a repayment plan agreed to by the retailer and customer.
All deferred payments must be paid back by June 18, 2021.
