Calgary City Council Considers Franchise Fee Changes for Natural Gas to Increase Revenue
Calgary's city council has initiated an analysis to amend the natural gas franchise fee formula, targeting an additional $25 million in revenue from ATCO by 2027. This move comes in light of the Alberta Utilities Commission's allowance for higher franchise fee collections, aiming to align with the city's growing infrastructure needs without raising property taxes.
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Calgary's city council voted to explore changes to the natural gas franchise fee structure, with a goal of increasing revenue from ATCO by $25 million in 2027. The council has directed the administration to assess the potential switch to a distribution-tariff methodology for calculating these fees, with findings expected by December 2026.
Currently, the city employs a quantity-only method for franchise fees, which stabilizes budgeting and protects consumers from price fluctuations. The Alberta Utilities Commission (AUC) permits municipalities to collect higher franchise fees, presenting a revenue opportunity for Calgary.
As Calgary faces budget challenges and an infrastructure deficit, increasing franchise fees may provide a crucial revenue stream without raising property taxes. Changes to the fee structure will require public consultation and council approval.
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