DIDSBURY - Town of Didsbury council’s financial planning committee will review the possibility of increasing franchise fee rates starting in 2025.
The move came by way of motion at the recent regularly scheduled council meeting.
ATCO Gas pays the Town of Didsbury a franchise fee based on the percentage of ATCO’s delivery tariff in town, and is currently set at 25 per cent.
FortisAlberta also pays the Town of Didsbury a franchise fee, which is based on a percentage of Fortis’ distribution and transmission, and is currently set at 17 per cent.
A one-per cent increase in the ATCO fee would bring in an additional $14,500 to the town and would increase the average residential customer bill by $5.86 per year or $0.49 per month. A five per cent increase would generate an additional $73,500 and would increase the average residential customer bill by $29.46 per year or $2.46 per month.
A one-per cent increase in the Fortis fee would generate an additional $49,500 and increase the average residential customer $15.06 per year. A two per cent increase would generate an additional $84,000.
Both ATCO and Fortis have requested a decision from council on the matter of any possible franchise fee changes by Nov. 1, 2024.
“Increasing franchise fees will allow for additional revenues to fund needed increases to road and sidewalk repairs and maintenance, instead of these increases coming simply from taxes,” chief administrative officer Ethan Gorner said in a briefing note to council.
“This therefore allow allows for all utility users, including government and tax-exempt properties, and users of road and sidewalk infrastructure to contribute to their upkeep, instead of just those property owners on the tax rolls.”
Council passed a motion referring the matter to the financial planning committee for review and recommendation.
“I’m looking forward to hearing from the committee on this,” said Coun. Ethan Williams.
