Calgary Proposes Increase in Natural Gas Franchise Fees Amid Infrastructure Funding Needs
Calgary has filed an application with the Alberta Utilities Commission to amend its natural gas franchise agreement, potentially raising residential bills by $2.45 monthly. This move aims to address a projected $49 billion infrastructure gap over the next decade.
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Calgary city council has submitted an application to the Alberta Utilities Commission to amend its natural gas franchise agreement with ATCO. If approved, the average monthly franchise fee is projected to rise to approximately $10.90 for residents, increasing total revenue from $71.6 million to $98.2 million in the next year.
This increase is part of a broader strategy to address an estimated $49 billion infrastructure deficit over the next ten years, with significant portions of Calgary’s infrastructure assessed as being in poor condition. The proposal includes a public feedback period from August 7-25, with a final application to the AUC anticipated by September 21. The city plans to shift to a consumption-based fee model by 2028, aiming for increased stability and transparency in charges.
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