Calgary natural gas franchise fee could rise in 2027

Calgary households using ATCO natural gas could see their monthly bills increase in 2027 as the city moves to raise its natural gas franchise fee.

The proposed change would add about $2.45 per month for the average household starting January 1, 2027, if approved by the Alberta Utilities Commission.

Calgary City Council has directed administration to collect $98.2 million in natural gas franchise fees in 2027, up from $71.6 million in 2026.

The city plans to increase the fixed gas reference price used to calculate the fee from $3.15 to $5.67 per gigajoule. This would bring the average household's franchise fee to approximately $10.90 per month.

The franchise fee is collected by ATCO from customers and transferred entirely to the City of Calgary. The city says the revenue helps fund its operating budget and reduce pressure for property-tax increases.

A public feedback period is open until August 25, while the city's application to the Alberta Utilities Commission is due by September 21.

Mayor Jeromy Farkas says Calgary needs to explore alternative sources of revenue as the city faces a multibillion-dollar infrastructure deficit.