Cold Lake is hiking the rate it charges at its EV charging station.
The changes will see the time-based rate of $0.50 per minute increase to $2 per kilowatt hour.
The move comes after the council approved a $250,000 capital budget to install two 100 kW DC fast chargers at City Hall and the Energy Centre, funded by $150,000 in municipal funds and a $100,000 grant from the Municipal Climate Change Action Centre’s Zero Emission Vehicle Infrastructure Program, back in 2022.
Both stations have been fully operational since July 2024, according to the City of Cold Lake.
Financially stable charging stations
The change is intended to make the city’s EV charging stations financially sustainable, the council heard.
CAO Kevin Nagoya explained that the main challenge in operating the EV charging stations is the high cost of electricity, including distribution and transmission fees.
He says the previous 50-cent rate covered only basic electrical costs, as outlined in the report to council.
Nagoya added that transmission and distribution costs bring the true cost of charging closer to $1.50 per minute. Many rural communities in Alberta are charging 50 cents per minute, meaning the service is often subsidized.
The policy change represents a significant increase in aligning with true operating costs.
He added, “It’s not a perfect science in this regard . . . So, if there’s increase or decrease in fees, that number changes a little bit, or usage changes.”
Adjusting the price for charging
Mayor Bob Mattice expressed support for the update. “You do what you got to do.”
He emphasized that the city would continue operating EV charging stations and is not abandoning the program, despite the need to adjust pricing.
Previously, the City subsidized operations for each session, as revenue from the time-based fee did not cover ATCO Electric’s electricity and distribution costs.
The new $2 per kWh rate shifts from time-based pricing to energy-based pricing, more accurately reflecting the cost to provide service and moving the program toward full operational cost recovery, an approach that is uncommon in Alberta.
A motion to approve the amendments as presented was carried.