The City of Calgary is aiming to implement a new Quantity Only model for the collection of franchise fees for electricity and natural gas by January 1, 2025, two years sooner than originally planned. This model was originally approved by Council on March 18, 2024
The Quantity Only model is an innovative way to calculate franchise fees for both electricity and natural gas that will benefit Calgarians. This model was developed by The City over the past two years in response to rising utility costs and to address affordability concerns of Calgarians. The model is based on a similar approach used in Edmonton that will:
- Provide greater clarity, predictability and control for consumers with a simple flat rate that isn’t tied to energy prices.
- Financially incentivize consumers to reduce their electricity and natural gas consumption that also has a positive climate impact.
- Allow The City more predictability in collecting what we budget for.
The targeted implementation date of the new franchise fee model has changed from our initial planned date of January 1, 2027 to January 1, 2025. This accelerated timeline will ensure that The City is compliant with the Utilities Affordability Statutes Amendment Act passed by the provincial government in June of this year.
Next steps
Currently, The City is working with its partners ENMAX and ATCO to negotiate agreements that incorporate the new model. Following negotiations, a submission will be made to the Alberta Utilities Commission (AUC) for review and approval. Once approved, The City will work with ENMAX and ATCO on the final step of implementing this change to their billing systems and notifying customers.
The new legislation from the Government of Alberta and the willingness of ENMAX, ATCO and the Alberta Utilities Commission to move quickly have been pivotal in ensuring a faster transition to a new franchise fee model.
More information
Visit Calgary.ca/FranchiseFee to learn more and stay updated on our progress.