For Immediate Release / September 20, 2022

City Approves Five Per Cent Increase in Electrical Franchise Fee

At the September 19, 2022 City Council Meeting, Council approved a recommendation to increase the City’s electrical franchise fee to 15 per cent from 10 per cent. The new rate will come into effect as of January 1, 2023.

The City of St. Albert has been looking at ways to increase its alternative sources of revenue in order to minimize the size of future tax increases. Electrical franchise fees are one of the ways a municipality can reduce the tax burden. It is also an opportunity to more equitably increase revenue, as nearly all organizations use electricity but not all organizations pay property taxes.

A single-family home assessed at $450,000, with an average electrical consumption of 640KWh/month, would see an increase of $40 in their annual electrical franchise fee. Increasing the electrical franchise fee to 15 per cent will generate an additional $1.7 million in revenue for the City, making it possible to reduce a future tax increase by 1.4 per cent. The decrease in taxes brings a net benefit to the average homeowner of $11 per year.

The Municipal Government Act authorizes municipalities to establish an electrical franchise fee, which is capped at a maximum of 20 per cent. The City will now follow the process outlined by the Alberta Utilities Commission to obtain approval for the fee increase.

For more information on the City’s electrical franchise fee, visit the Bylaws page

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Last edited: September 20, 2022