Calgary Plans Natural Gas Bill Hike Amid Infrastructure Concerns

Calgary residents may see their natural gas bills rise next year due to an application filed by the city and ATCO with the Alberta Utilities Commission (AUC) to amend their franchise agreement. If approved, the average residential consumer's monthly franchise fee would increase from $8.45 to approximately $10.90.

The city aims to collect $98.2 million in revenue from natural gas franchise fees next year, up from this year's target of $71.6 million. This is part of the city's efforts to bridge its infrastructure gap, which has been estimated to require $49 billion over the next decade.

The proposed change would raise the fixed monthly gas price used to calculate franchise fees. The city plans to switch to a consumption-based model in 2028, charging customers based on their energy usage rather than prices. This is already how the city collects local access fees on electricity bills.