Summary#
Edmonton City Council approved raising the electricity franchise fee in its agreement with EPCOR Distribution and Transmission Inc. from 17.65% to 19.4%, effective January 1, 2027. The fee is a percentage of electricity distribution charges; EPCOR pays it to the City and recovers it from utility customers. Council also directed City staff to provide a five-year trend of water, wastewater, electricity and waste utility rates, including applicable franchise fees, for 2021–2025.
- The fee increase passed 8–5. Councillors K. Principe, E. Rutherford, R. Clarke, M. Elliott and T. Parmar voted against.
- The separate direction to provide the utility-rate memo passed 13–0. No due date was stated.
- City staff had recommended a 20% fee, but Council approved 19.4%.
What it means for you#
- Electricity customers: The franchise-fee portion of your EPCOR bill is set to rise in 2027. The materials do not estimate the bill impact at the approved 19.4% rate.
- Taxpayers: City staff say franchise-fee revenue supports general tax-levy operations. The materials do not specify a direct benefit to individual taxpayers.
- Utility customers: City staff must provide Council with the requested five-year rate trend. The motion does not set a deadline.
Money#
The City expects more franchise-fee revenue, but the materials do not estimate the increase at the approved 19.4% rate.
- City staff’s estimates were for their 20% recommendation: $14.8 million more in 2027, bringing total electricity franchise-fee revenue to $125.6 million.
- For that 20% proposal, staff estimated a typical residential customer’s monthly franchise fee would rise from $9.06 to $10.27, an increase of $1.21. Those figures are not estimates for Council’s lower, 19.4% rate.
What is unclear#
- The materials do not say what the approved 19.4% rate will add to City revenue or to customer bills.
- The staff report describes notice steps for its 20% recommendation; the materials do not confirm the updated steps or dates for the 19.4% decision.
- No public engagement with utility ratepayers was conducted for the report.
Case for#
- City staff say franchise fees are payment for the utility’s exclusive distribution rights and use of City rights-of-way.
- Staff report that some Alberta municipalities charge 20%, while Calgary’s effective rate is 19.4%. The approved rate matches the Calgary figure cited in the report.
- The increase would provide additional revenue for City operations, according to staff.
Case against#
- The increase means customers will pay a higher franchise-fee charge through their electricity bills; the impact at 19.4% is not provided.
- City staff recommended 20%, but Council approved 19.4%. The materials do not explain why Council chose that rate or what the difference means for revenue and bills.
- No ratepayer engagement was conducted. Five councillors voted against the increase, but the materials do not give their reasons.