Calgary, ENMAX agree on new franchise fee structure, send off to Alberta Utilities Commission for approval

A franchise fee agreement between the City of Calgary and ENMAX is ready to go to the Alberta Utilities Commission, making cheaper electricity bills one step closer to reality.

The new agreement, authorized Tuesday, updates the calculation method for franchise fees (also known as local access fees) abd a new franchise fee rate for electricity.

The city says these changes will make the fee more stable and transparent for Calgarians.

The proposed franchise fee for 2025 is $0.015507 per kilowatt-hour (kWh) for all customers, both residential and non-residential.

City officials estimate this will generate $143.5 million in revenue next year, a $36.7 million decrease from the existing calculation method.

READ MORE: Changes to Calgary’s local access fee coming two years ahead of schedule

The average residential consumer is set to see their electricity franchise fee go down by about 30 per cent in 2025. The city says the new rate will result in an average monthly cost of $7.91 in 2025, down from an estimated $11.24 per month in 2024.

“We’ve heard from Council and Calgarians about the importance of affordable and predictable energy bills,” said Carla Male, Chief Financial Officer at The City of Calgary. “We’ve designed the new franchise fee, the only charge that is set and collected by the city, to be simpler and clearer to understand — a fixed amount per kilowatt-hour instead of a complicated formula tied to unpredictable energy rates. These changes will result in direct savings on electricity bills for Calgarians.”

ENMAX, on behalf of the city, will apply to the Alberta Utilities Commission for approval of the new franchjise fee agreement, including the franchise fee rate, by Sept., 27.,

The city expects receiving approval to implement the new franchise fee by Jan. 1, 2025.

Calgarians can submit their feedback on the proposed change during a public notice period being held until Sept. 24.

For more information, visit calgary.ca/franchisefees