Rocky Mountain House is expected to generate around $148,000 in additional annual revenue after council increased its franchise fees for electricity and natural gas.
Franchise fees generate revenue from utilities that can help offset the loss of tax revenue from tax-exempt properties in town, such as government buildings, churches and non-profits.
In 2026, the town was expected to receive around $730,400 from its natural gas franchise fee, while the electricity franchise fee was expected to generate just over $1 million.
Even without the rate increases, both were forecast to increase in 2027, with gas revenue increasing by $22,600 from 2026 and electricity revenue increasing by around $15,000.
Council passed two separate motions that will increase the natural gas franchise fee from 30 to 33 per cent, while the electricity franchise fee increased by 1.2 percentage points to 18 per cent.
Every one-per-cent increase to the gas rate raises revenue by approximately $25,000, while every one-per-cent increase in the electricity rate raises more than $60,000.
It marks the first increase to the gas franchise fee since 2015.
Coun. Dale Shippelt said raising the gas rate more is the fairest solution, as increasing the electricity rate could have a greater effect on small businesses that use more electricity.
“A small mom and pop operation who may have seven coolers — their power consumption goes up but their gas bill does not,” he said.
Coun. Kevin Stalker suggested increasing the gas franchise fee to the maximum 35 per cent. He argued that since the town will have to find additional revenue somewhere, it might as well come from franchise fees, which he believes are more evenly spread.
CAO Dean Krause said the town could look at further changes down the road.
Around Alberta, towns such as Blackfalds and Olds have set their natural gas franchise fees at the maximum 35 per cent, while towns such as Drayton Valley and Taber have fees below 25 per cent.
While Shippelt had hoped to keep the electricity rate unchanged, council ultimately approved a 1.2 percentage point increase to the fee.
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