Electrical franchise fee increase negotiated with ATCO

Additional franchise fees for ATCO electric have been set in motion by council, to be approved by the Alberta Utilities Commission later this year.

The City enters into a franchise fee agreement with ATCO for both gas and electric services, which is typically a long-term arrangement. Through this agreement, ATCO has the exclusive right to distribute its services, and pays the municipality a franchise fee in exchange. These fees are recovered by ATCO from its consumers.

“This is a standard agreement for most municipalities,” said Mayor Craig Copeland.

Since 2005, there has only been one increase in the electrical franchise fees, which was in 2022 to recoup the costs of upgrading to LED streetlights.

The proposed increase is 1.5 per cent for ATCO electrical services, which will provide the City with a revenue of approximately $230,000. For the average residential home, this will be an increase of an estimated $1.85 per month.

The increase to these franchise fees will take effect starting Jan. 1, 2024.

Gas franchise fee increase negotiated with ATCO

Additional franchise fees for ATCO natural gas have been set in motion by council, to be approved by the Alberta Utilities Commission later this year.

The City enters into a franchise fee agreement with ATCO for both gas and electric services, which is typically a long-term arrangement. Through this agreement, ATCO has the exclusive right to distribute its services, and pays the municipality a franchise fee in exchange. These fees are recovered by ATCO from its consumers.

“We understand budgets are tight, so we kept the increase minimal,” said Mayor Craig Copeland.

Since 2005, there have been no increases to the gas franchise fee.

The proposed increase is 2.5 per cent for ATCO natural gas services, which will provide the City with a revenue of approximately $100,000. For the average residential home, this will be an increase of an estimated $1.22 per month.

The increase to these franchise fees will take effect starting Jan. 1, 2024.