The Alberta Utilities Commission (AUC) has approved a new franchise agreement between The City of Calgary and ENMAX, set to bring more affordable and predictable electricity bills to Calgarians.
Starting Jan. 1, 2025, the electricity franchise fee (also known as a Local Access Fee on electricity bills) will be calculated using only a fixed rate of $0.015507 per kilowatt-hour (kWh) for all customers. This new formula will provide greater stability and transparency for Calgarians by eliminating the variable, market-driven electricity rate from the franchise fee calculation.
For the average customer, this change is expected to reduce the franchise fee by 30 per cent in 2025 from 2024, lowering the average monthly cost from an estimated $11.24 to $7.91.
Earlier this year, Council approved changes to franchise fee calculations in direct response to rising utility costs and affordability concerns of Calgarians. These changes included removing the variable electricity rate from the calculation which, in the past, has led to large swings in both the franchise fee for Calgarians and revenue for The City.
In the latter half of 2024, The City and ENMAX developed a new franchise agreement. After a public notice period in September to gather feedback, ENMAX on behalf of The City applied for approval of the franchise agreement to the AUC.
The updated franchise fee will take effect on electricity bills starting Jan. 1, 2025, and ensures compliance with the Government of Alberta’s Utilities Affordability Statutes Amendment Act, 2024.
The update we’re making to the franchise fee underscores The City’s commitment to making utility costs more stable and predictable for all Calgarians.
For more information on utility franchise fees and the changes we’re making, visit calgary.ca/franchisefee.
