At the Drumheller Town Council meeting on Tuesday, September 9th, a Request For Decision came forward as to the franchise fee that ATCO Electric charges in their distribution fees for electricity for residents in Drumheller.
Currently, the Town of Drumheller charges through ATCO Electric a 9 per cent franchise fee which is collected from all in our community that have power bills through whichever company they buy their power from. In a presentation to Council by Greg Towne, Finance Manager for the Town of Drumheller, it was shared that Drumheller is well below the average distribution fee rates that are charges by communities within a 100 kilometre radius, as well as communities within Alberta of comparable size. The average for communities within 100 kilometeres of Drumheller is at 12.28 percent. The average of comparable communities is at 13.98 percent. Through the discussion at the council meeting, Mr. Towne shared that Drumheller has not changed their franchise fee in the past 25 years. It was also brought up through the discussion that the franchise fee is essentially a tax and the funds received would go into general revenue.
If the Town of Drumheller was to recommend an increase, the Town would receive approximately $100,000 for every 1 percent increase in the franchise fee. For residential customers, for every 1 percent increase, it would equate to approximately $1.36 per month in their electricity bill.
Administration did propose an increase of the electricity franchise fee by 3 percent, effective January 1, 2027. The proposed rate change must be advertised locally for two consecutive weeks as per the guidelines by the Alberta Utilities Commission. The Town of Drumheller release will be coming soon to allow residents to voice any concerns or objections about the rate changes and we will update the story when it is received.
Council did agree on the 3 percent franchise fee increase and it was passed unanimously.
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