Franchise fees on natural gas & electrical distribution increased 1% and 0.7% in Bonnyville

Change would offset shortfalls projected from distributors. 

Franchise fees for natural gas and electrical distribution have increased for Bonnyville rateapayers. 

The discussion was brought forward by administration at last Tuesday’s regular council meeting, with projections from APEX Utilities and ATCO Electric that revenues from these fees may be lower than in the past. 

“Unfortunately, we’re in that spot right now where, with inflation, keeping up with services and everything, we did have to do a small increase,” Deputy Mayor Byron Johnson said on The Morning After, explaining the Town’s decision. 

Fee increase percentages

The fee on the natural gas side was raised one per cent, from 20 to 21 per cent. 

According to Town notes, this represents an increase of roughly $1 a month for ratepayers, and would offset the projected $41,000 in revenue that APEX forecasts. 

This is the first increase in the fee percentage since the agreement was signed in 2003. 

The rate on the electrical fee was raised from 6.8 per cent to 7.5 per cent, representing an approximate $1.75 per month increase for a total of $18.75 per year. 

It is estimated that increasing the franchise fee by this amount would generate an additional $71,000 in revenue. 

However, the franchise agreement with ATCO is set to expire next year. 

Town council, with Deputy Mayor Byron Johnson chairing the meeting with Mayor Elisa Brosseau away, disagreed before the increase was passed. 

“It’s something that we have not touched in a long time…we’re right in line with other municipalities in our area or lower,” said Johnson.  

Disagreement

Councillor Neil Langridge said during the discussion on both items that it was a tough ask. 

“This one’s a sore one for everybody dealing with utility costs right now. We know it’s a big pain point in our community, and every community around the province, to raise at this point in time off of a forecast. I have a hard time doing it myself, but that’s just my opinion,” he said during the meeting. 

The split vote was carried following the recommendation, allowing administration the ability to begin the process of increasing the fees. 

The franchise fee paid to the Town is, “in addition to municipal taxes and other levies or charges made by the municipality against the company, its land and buildings, linear property, machinery and equipment and the Distribution System,” cited in Town notes. 

These fees come as part of exclusive contracts to provide natural gas and electrical distribution within the Town of Bonnyville.