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Preamble:
WHEREAS municipalities have historically been granted authority under the Municipal Government Act to establish, operate, and govern municipal public utilities in a manner that reflects local needs and priorities; and
WHEREAS municipally owned utilities provide essential services to residents and businesses while ensuring local accountability, community-based decision making, and reinvestment of revenues into local infrastructure, services and communities; and
WHEREAS Bill 28, the Municipal Affairs and Housing Statutes Amendment Act, 2026, introduces Section 44.1 to the Municipal Government Act, granting the Lieutenant Governor in Council authority to require a municipality to transfer ownership or control of a municipal public utility to a designated public utility entity; and
WHEREAS the proposed legislation further allows regulations to govern the transfer of assets, employees, operations, governance structures, and may override provisions of the Municipal Government Act; and
WHEREAS the intent, criteria, and circumstances under which the Government of Alberta may compel such transfers have not been clearly defined, creating uncertainty for municipalities that have invested significant resources into developing and maintaining utility infrastructure; and
WHEREAS municipal utility assets have been funded through local ratepayers and customers and should remain subject to local governance and accountability unless a municipality voluntarily elects to pursue an alternative governance model; and
WHEREAS the potential transfer of municipal utility ownership or control may negatively impact municipal autonomy, local service delivery, long-term infrastructure planning, and the financial sustainability of municipally owned utilities; and
WHEREAS both the Rural Municipalities of Alberta and Alberta Municipalities have identified concerns regarding the implications of Bill 28 on municipal autonomy and local decision-making;
Operative Clause:
THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate to the Government of Alberta (GOA) to repeal or substantially amend Section 44.1 of the Municipal Government Act to ensure that ownership and control of municipally owned public utilities cannot be transferred without the consent of the affected municipality; and
FURTHER BE IT RESOLVED that the GOA engages municipalities, the Federation of Alberta Gas Co-ops, Alberta Municipalities, and the Rural Municipalities of Alberta in meaningful consultation prior to implementing any regulations related to municipal utility governance, ownership, or control; and
FURTHER BE IT RESOLVED that any future legislative or regulatory changes affecting municipal public utilities preserve municipal autonomy, local accountability, and the ability of municipalities to determine the most effective utility governance model for their communities.
Member Background:
The County of Vermilion River owns and operates a municipally controlled Natural Gas Utility that has been providing reliable and affordable service to residents, industry and customers throughout multiple municipalities since 1979.
The system has been developed and maintained through local investment and planning, demonstrating responsible stewardship of municipal assets and ensuring that decisions regarding service levels, infrastructure replacement, rates, and long-term planning utilities remain accountable to local residents and industry standards.
Bill 28 introduces a new section to the Municipal Government Act that allows the transfer of ownership or control of a municipal public utility to a designated public utility entity. The legislation does not clearly identify the circumstances under which these powers may be exercised and functions as a blanket clause for all utilities, whether they are functioning and operating successfully or not.
Municipalities have made substantial investments in utility infrastructure and have a responsibility to ensure these systems remain sustainable, responsive to local needs and adhere to industry standards. Any authority that enables the involuntary transfer of municipal utility ownership or governance to the province or a designated public utility entity creates uncertainty regarding local operations, financial planning, and accountability to utility customers, and poses risks to municipalities regarding staffing, compensation for resources invested in the utility, and transitions if a takeover is mandated.
Municipal utility services are best governed by the communities they serve. Any changes to utility governance structures should occur through voluntary collaboration and consultation rather than through provincial authority to compel ownership or operational transfers. There should also be clear guidelines and requirements for when a utility is at risk of being taken over by a provincial authority or a designated public utility entity.
RMA Background:
RMA has no active resolutions directly related to this issue.
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