Calgary receives approval for new franchise fee rate for natural gas
Posted Feb 14, 2025 3:39 pm.
Last Updated Feb 14, 2025 5:37 pm.
Calgary residents can expect to see more stable natural gas bills starting next month.
The city and ATCO have received approval from the Alberta Utilities Commission (AUC) to change how they calculate natural gas franchise fees starting on March 1.
Instead of a variable gas cost, a fixed price of $3.15 per gigajoule will be used in the franchise fee formula, helping to protect residents from unpredictable price swings.
In 2025, the natural gas franchise fee is expected to increase by $1.08 per month, but a new electricity fee that began on Jan. 1 is expected to decrease by more than $3 per month — meaning customers can expect to pay less in combined fees this year, according to the city.
By 2027, the city and ATCO gas intend to change the way they calculate the franchise fee from a complicated formula to fixed per gigajoule rate.
More information on utility franchise fees can be found here.
