Calgary Proposes Franchise Fee Hike to Fund Infrastructure

The City of Calgary is proposing to increase franchise fees for natural gas customers in the city. The application, filed on August 7 with the Alberta Utilities Commission (AUC), would raise the fixed gas price cost from $3.15 per gigajoule (GJ) to $5.67/GJ starting January 1, 2027. This change is expected to result in a monthly increase of approximately $2.45 on average Calgary customer's gas bill.

The increased revenue would be used to fund the City's operating budget and support essential infrastructure projects. Calgary Mayor Jeromy Farkas explained that franchise fees are a more equitable way to raise revenues, as they are calculated based on individual usage rather than property values.

Farkas emphasized the importance of addressing the city's $50 billion infrastructure deficit over the next decade. He stated that every additional dollar collected through franchise fees must be earmarked for essential infrastructure projects, with clear delineation and transparency in customer bills.

The public feedback period on the proposed increase is ongoing until August 25, 2026. ATCO Gas will then submit its application to the AUC by September 21 for approval of the rate increase.