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We’re modernizing our substation infrastructure to ensure stable, reliable electricity delivery in Medicine Hat.
What is a substation?
A substation is where high‑voltage electricity is transformed to lower voltages, routed in the right direction, and safely controlled.
Typically, electricity flows like this:
We plan to renew (modernize) three key electrical substations: MHS-2, MHS-3, and MHS-5.
Substations don’t often get “retired”; instead they get rebuilt in phases to keep service. The main drivers that determine when an asset is ready for renewal include:
The typical service life of a substation varies depending on factors such as the amount of power, environment, maintenance quality, and obsolescence/parts support. Below is a general rule of thumb:
40-60 years
Service life can be extended through renewal, which is what this project will do.
40-60 years
depending on condition
25-40 years
Breakers can sometimes longer with refurbishment but replacement is often driven by condition, availability (or lack) of parts, or obsolescence.
10-25 years
These are relays, RTUs, SCADA, comms and are usually dependent on technology and supportability.
5-15 years
Condition is chemistry and temperature dependent.
40-60 years*
*HVAC systems to cool the electrical infrastructure typically need to be replaced within 5-15 years.
How much will this project cost?
Phase 1 of the substation modernization program focuses on the first three high-priority substations MHS-2, MHS-3, and MHS-5.
The estimated cost of Phase 1 is $45 million between 2026-2030.
A 2025 independent assessment found high-priority issues at these sites. Much of the equipment is original (commissioned in 1984) and is now 40–45 years old.
We try to be as fiscally astute as possible and not spend money too early. We have stretched the most we can out of these assets and it is now time to rejuvenate.
Long lead times for key components and industry-wide cost increases mean earlier ordering is needed to reduce risk. Safety and reliability risks are only partially mitigated until the substations are modernized, so proceeding now helps accommodate earlier delivery of long-lead parts.
What is the planned timeline for construction (subject to Council budget amendment approval)?
What happens if the substations are not modernized?
Older equipment increases safety and reliability risks, may create regulatory compliance concerns, and raises the risk of major equipment failure, especially because critical components have no readily available spares.
Is the system voltage increasing from 69kV to 138kV?
No. A preliminary evaluation found a full upgrade to 138kV is not required on these stations for current or near-term electricity demand.
The recommended approach is a “Replace-in-Kind” 69kV modernization strategy. However, we are incorporating equipment choices that support safety and compliance, such as dual-voltage transformers and 138kV-rated breakers, without converting the entire system to 138kV.
The addition of MHS-11, which will be in-service in 2027, satisfies identified electricity needs for growth in Medicine Hat’s south.
Will there be power outages or service disruptions?
Yes. There will be planned electric service disruptions during the modernization process. Residents and businesses will be informed about planned disruptions as they near.
Will this affect my electricity rates?
Yes, in the future. The City’s distribution rates are set using a cost-plus approach. Therefore, costs for a specific asset do not generally appear on utility bills until the asset begins to depreciate, which is planned for 2028 when MHS-3 is upgraded.
Other electricity work (like MHS-11) may impact rates earlier, but specific to this project, effects won’t appear until 2028.
The costs to maintain/renew electric infrastructure are recovered through two charges on your utility bill: Service charge and Facilities Usage charge. To learn more about the charges on a residential utility bill, go to medicinehat.ca/utilitybill.
Medicine Hat’s rates are still lower. Our customers avoid transmission fees, thanks to the exemption in the Electric Utilities Act that allows us to own and maintain our own grid.
Who owns and operates the electric distribution system, and who sets distribution rates?
Subject to provincial legislation and regulation, the City of Medicine Hat owns and operates the distribution system within the electric franchise area, and City Council regulates the related distribution rates.
Contact Us
Electric Distribution
2172 Brier Park Place NW
P: 403-529-8270
F: 403-502-8060
Email us
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