Provincial legislation standardizing how municipalities calculate electricity bill franchise fees is not expected to have much impact in Red Deer County.
Bill 19 – the Utilities Affordability Statutes Amendment Act – mandates that local access fees not be tied to electricity default rates rather than consumption. The legislation is primarily going to affect Calgary, the only municipality using the default rate when calculating local electricity rates.
Calgary’s system caught the province’s eye after a provincial analysis found $186 million more was collected by the city than anticipated.
In Red Deer County the franchise fee shows up on electricity bills in Springbrook and Gasoline Alley. Residents and businesses are unlikely to see any changes as a result of the legislation, county corporate services director Dave Dittrick told council on Tuesday.
Electricity customers are charged the fee, which is meant to compensate municipalities for the use of its property to provide electricity services.
However, the county is taking a look at its franchise fee revenue, which has been saved steadily in the last few years as new development and electricity usage increases.
The franchise fee fund for Gasoline Alley is expected to top $500,000 by 2026 and hit around $155,000 for Springbrook.
The county has not determined how to distribute the funds to the two hamlets yet. The money could possibly be used for community programs or to provide grants for community associations.