As part of its effort to make electricity more affordable, the Alberta government is introducing changes to the way municipalities charge utility fees. The new Utilities Affordability Statutes Amendment Act, which was proposed in the legislature on Monday, will require Calgary to change how it calculates local access fees on Enmax utility bills. This change is expected to lower electricity prices for Calgary residents.
Currently, Calgary uses a method to calculate local access fees that includes the province’s default electricity price, known as the regulated rate option (RRO). However, the province believes that this method has led to Calgary profiting from spikes in electricity prices. As a result, the new legislation will prohibit the use of the RRO in calculating local access fees.
Premier Danielle Smith stated that she has been advocating for changes to local access fees since 2006. She believes that Calgary has been aware of the issue but has delayed addressing it. Affordability and Utilities Minister Nate Neudorf has expressed frustration with Calgary’s inaction and has emphasized the need for immediate action.
According to the province, Calgary power users paid significantly higher local access fees in 2023 compared to Edmonton customers of Epcor. The province estimates that Calgary collected $186 million more than expected in fees last year due to its current calculation method.
The legislation, if passed, would only directly affect Calgary. However, it also aims to deter other municipalities from adopting similar models. Minister Neudorf emphasized that utility infrastructure costs should be the primary factor in setting fees.
The proposed changes have been discussed with Calgary Mayor Jyoti Gondek, and the government has expressed its commitment to addressing concerns raised by the city.
