Council holds the line again on franchise fees

Cold Lake, AB – For the fourth year in a row, Cold Lake City Council will maintain its electrical and gas franchise fees instead of choosing to increase them.

The City of Cold Lake is in a multi-year electric distribution franchise agreement with ATCO Electric and ATCO Gas and Pipelines Ltd. Franchise fees allow municipalities to charge an access fee to utility companies for the use of roads, right of ways, and municipal lands. These fees are passed on to the consumer.

“We are the lowest franchise fees of reported mid-sized municipalities in Alberta and the lowest amongst reported Lakeland municipalities,” said Mayor Bob Mattice. “Because franchise fees are recovered from consumers, we know that increasing the fees would come back to our residents through their electric and gas bills.”

The franchise fees are set at 7.25 per cent with ATCO Electric and 15.5 per cent with ATCO Gas and Pipelines Ltd. These same rates were first applied in 2024 and maintained through 2025 and 2026, making 2027 the fourth year without increased franchise fees for Cold Lake. The fees are estimated to generate $1,312,952 in electricity franchise fees and $710,000 in gas franchise fees for 2027.

Compared to other cities and some local municipalities, Cold Lake maintains the lowest franchise fees for both electric and gas:

• City of Lloydminster: 14.5% (electric); 28.5% (gas)
• City of Grande Prairie: 12.00% (electric); 31.6% (gas)
• Town of St. Paul: 9.00% (electric); 27% (gas)
• Town of Bonnyville: 7.5% (electric); 21% (gas)

The franchise fee agreement with ATCO Electric started in August 2013 for ten years, with a five-year extension until 2028. The franchise fee agreement with ATCO Gas and Pipelines started in July 2023 and will continue for ten years until 2033.

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