Enmax  Western Standard files
News

Calgary secures new agreement to lower electricity franchise fee

Western Standard News Services

Calgarians can expect lower and more predictable electricity bills in the new year, as the Alberta Utilities Commission (AUC) has approved a revised franchise agreement between the City of Calgary and ENMAX.

Starting January 1, the electricity franchise fee — listed as a Local Access Fee on utility bills — will be calculated at a fixed rate of $0.015507 per kilowatt-hour (kWh) for all customers.

This change eliminates the variable market-driven rate that previously influenced the fee, bringing stability and transparency to electricity costs.

For the average Calgarian, the revised fee structure represents a 30% reduction in 2025 compared to 2024, with estimated monthly costs dropping from $11.24 to $7.91.

“These updates underscore the city’s commitment to making utility costs more stable and predictable for all Calgarians,” said a spokesperson for the City of Calgary.

City council initiated the changes earlier in response to rising utility costs and affordability concerns. Removing the variable rate aims to mitigate large swings in franchise fees for residents and revenue for the city.

The City and ENMAX collaborated on the new agreement in late 2024, following public feedback collected in September. The revised fee complies with the Government of Alberta’s Utilities Affordability Statutes Amendment Act, 2024.