Edson town council has approved new Municipal Franchise Fees for gas and electricity, adding approximately $1.58 per month to residential consumer bills.
Franchise fees are charged to utility companies for the exclusive right to provide services within the municipality. They also grant providers access to town-owned land for construction, maintenance and infrastructure operations.
The fees are also intended to ensure a more equitable distribution of municipal costs, as nearly all organizations consume utilities, even if they do not contribute to property taxes, like schools, non-profit organizations and places of worship, for example. They’re capped at 20 per cent for electricity and 35 per cent for natural gas.
As per administration’s recommendation, council kept the Atco Gas and Yellowhead Gas Co-Op Ltd. fees unchanged at 22.54 per cent.
The Fortis Alberta fees will increase to 6.7 per cent from 4.7 per cent. According to the council agenda, the median franchise fee in comparable municipalities is 14 per cent, which the new rate is still well below. This change brings resident rates to about $5.30 per month ($63.63 per year), an impact of $1.58 per month ($18.96 per year) per customer in 2026.
The increase is projected to add $197,782 in additional revenue to support the town’s 2026 budget.
The new rates go into effect on Jan. 1, 2026.
Edson town council approved the rates during its regularly scheduled meeting on Sept. 2.
