BONNYVILLE – Bonnyville residents will not see an increase to the Town’s portion of their natural gas bill in 2027 after council voted to keep its APEX Utilities franchise fee at 21%.

But what exactly is a franchise fee?

In simple terms, APEX Utilities uses municipal land and rights-of-way to run its natural gas distribution system through Bonnyville. Under its agreement with APEX, the Town receives a percentage of the company’s delivery revenue collected within the municipality.

That fee is ultimately passed along through customers’ natural gas bills, where it appears as part of the local access fee.

During the Sept. 8 council meeting, Councillor Kayla Blanchette asked administration to explain the fee for residents who may not be familiar with it.

“Can you perhaps remind folks at home who might be listening what the franchise fee is for?” Blanchette asked.

Administration explained that it relates to APEX’s distribution infrastructure running through the municipality.

“So essentially, the Town of Bonnyville charges the corporation for their infrastructure being in our Town, to be the distributor within the Town of Bonnyville,” Blanchette summarized.

Town expects more revenue without raising the rate

The Town doesn’t need to increase the percentage to bring in more money next year.

APEX estimates natural gas delivery revenue within Bonnyville will reach approximately $4.71 million in 2027. At the existing 21% franchise fee, that would generate about $988,284 for the Town.

For comparison, Bonnyville received about $897,090 in 2025, while the Town budgeted approximately $952,352 from the fee in 2026.

The 2027 forecast is about $35,932 higher than this year’s budget, without changing the 21% rate.

Because revenue is already expected to increase, administration recommended leaving the percentage alone.

Council agreed.

Mayor Elisa Brosseau said she supported keeping the rate where it is, particularly given current costs facing residents.

“Just with the rate of inflation right now, I think this is one thing that should remain the same,” Brosseau said.

Council then carried a motion advising APEX that Bonnyville does not want to change its franchise fee percentage for 2027.

The decision doesn’t mean residents’ overall natural gas bills cannot change. Gas prices, consumption and other charges can still affect what a household pays. It simply means the Town is not increasing its 21% franchise fee rate for 2027.