The City of Calgary and ATCO Gas and Pipelines Ltd. have received approval from the Alberta Utilities Commission (AUC) for a new natural gas franchise fee rate, set to bring more predictable bills to Calgarians starting March 1, 2025.  

The new rate improves the stability and transparency of the natural gas franchise fee by substituting the variable cost of gas with a fixed price of $3.15 per gigajoule (GJ) in the existing franchise fee formula. This fixed price protects Calgarians from fluctuations in the franchise fee caused by market-driven changes in natural gas prices. It also ensures compliance with the Government of Alberta’s Utilities Affordability Statutes Amendment Act, 2024. 

In 2025, the natural gas franchise fee for the average residential customer is expected to rise by $1.08 per month, representing a 1.5 per cent increase on the total bill. Despite this increase, residential customers can expect to pay less in combined franchise fees for both electricity and natural gas in 2025, as the new electricity franchise fee — which was implemented on Jan. 1, 2025 — is projected to decrease by $3.33 per month from 2024. 

In 2027, The City and ATCO Gas and Pipelines Ltd. intend to transition to a straightforward ‘quantity only’ calculation method, like how we calculate the current electricity franchise fee. We’ll charge a simple rate per GJ of natural gas, eliminating the complicated formula that currently includes natural gas delivery and energy charges. 

This innovative approach to franchise fees reaffirms The City’s commitment to ensuring utility costs remain stable, predictable and affordable for all Calgarians. 

For more information on utility franchise fees and the changes being made, visit calgary.ca/franchisefee.