Calgary Natural Gas Bills Set to Rise Amid Franchise Fee Hike Proposal

Calgarians are set to pay more on their natural gas bills each month as an application has been filed with the Alberta Utilities Commission (AUC) for a new franchise fee agreement. The proposed amendment will change the fixed gas price cost from $3.15 per gigajoule (GJ) to $5.67/GJ starting January 1, 2027, resulting in a roughly $2.45 monthly increase on a gas bill.

The City of Calgary collects franchise fees from utilities instead of annual property taxes. The revenue collected will help fund the city's operating budget and support essential infrastructure projects.

Calgary Mayor Jeromy Farkas supports the increase, but with one condition: that every additional dollar raised be earmarked for essential infrastructure projects. 'Franchise fees are a more equitable way to raise revenues,' he said. 'They're based on one's use, so if you use more, you have the ability to pay more.'

The public feedback period is open until August 25, and the next step will be for ATCO Gas to apply for approval of the rate increase by September 21.