Red Deer County Raises Natural Gas Fees for Springbrook and Gasoline Alley

Residents and businesses in Springbrook and Gasoline Alley will soon face higher natural gas costs after Red Deer County council approved a fee increase. The so-called franchise fee, which is a percentage of ATCO’s delivery tariff, will rise for both areas, though council rejected a proposal to more than double the fee for Springbrook residents from 10.5% to 25%. This would have increased the average household’s monthly bill from $5 to $11.87.

Coun. Dana Depalme strongly opposed the steep hike, noting that Springbrook residents are already burdened with other fee increases. “In my honest opinion, these two areas get hammered with fees,” she said, adding that the increased revenues are not an immediate necessity but rather a plan to build funds for future projects. Depalme also pointed out that many Springbrook homes were recently affected by a hailstorm in July.

The franchise fee agreement with ATCO allows the company to use county rights-of-way for natural gas infrastructure, reducing costs for developers. The money collected from the fees stays with the county to fund future projects benefiting the hamlets. Council heard that aligning the fees with other central Alberta communities was a key reason for the increase.

Mayor Brent Ramsay proposed an amendment to reduce Springbrook’s fee increase to 15%, which council approved in a 5-2 vote. Gasoline Alley’s fee will rise to 25% from 19.5%, bringing the average household’s monthly bill to $11.87 from $9.26. Coun. Kelli Ritz voted against the increase, expressing concerns about raising fees without specific plans for the funds, especially at a time when the county aims to remain competitive.