Following 2024 deliberations, ATCO Gas and Pipelines Ltd. may continue to supplying Rocky Mountain House with natural gas for another decade.
The Alberta Utilities Commission (AUC) will soon receive an application from the company to renew its natural gas franchise agreement with the town of Rocky Mountain House. The renewal, if approved, will grant ATCO the exclusive right to supply natural gas to the town for another 10 years, starting Oct. 1, 2025.
In the application, the franchise fee rate will remain at 30 per cent, with the average monthly cost share for residential customers expected to stay at $16.96, based on a typical usage of 105 gigajoules per year.
Franchise fees are revenue dollars generated from tariffs on utilities, which can be applied to taxable as well as any non-taxable properties in town, such as government buildings, churches and non-profits.
Assessments show around 23 per cent of non-residential properties in Rocky Mountain House are non-taxable.
In a 2024 presentation from Corporate Services Director Betty Quinlan, the current 30 per cent rate on gas provided by ATCO provided $694,019 in revenue for the town. The forecast for 2025 at the same rate showed revenue of $725,828 – a $31,809 increase.
The rate has been at 30 per cent since 2015.
Calculations show every one per cent increase in the ATCO rate would result in $24,194 of additional revenue and would be an increase of $6.19 per year for an average consumer.
Residents have a Feb. 26, 2025 deadline to submit objections or support by contacting Quinlan at the Town of Rocky Mountain House.
As for electricity, a 2024 town council motion saw the Fortis franchise fee increase by 1.5 per cent to a rate of 16.8 per cent.
Documents show other similar-sized communities such as Innisfail and Taber have higher electricity tariff rates at 17 per cent, while others such as Drayton Valley have rates as low as 10 per cent.
The town’s 2025 operating budget is set at $28,042,892, marking an increase of nearly $1.16 million from the previous year. Franchise fees accounted for $159,558 in additional revenue.
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