Calgary city council looking at possible change to electricity fee
Calgary city council unanimously approved a review of the current local access fee (LAF) that Calgarians see on their monthly electricity bill.
It's a fee that has grown significantly over the past few years because it is tied to the volatility of the regulated rate option (RRO).
"Costs on the regulated rate option a few years ago were averaging somewhere between $50 to $70 per megawatt hour," said Thomas Glenwright, senior director of utilities management at Energy Associates International.
"This year, for comparison, we're seeing the regulated rate option average between $170 to as much as $320 per megawatt hour last month. So LAF revenues have skyrocketed accordingly, and the LAF costs on customers have skyrocketed as well."
Glenwright says the decision to review the fee structure is long overdue.
"It's better late than never. It was welcome news, and the review can't come quick enough," he said.
The fee is charged for using public land for utility infrastructure instead of a form of property tax.
Calgary is the only municipality that ties the fee to the ever-fluctuating RRO, which means Calgarians are currently paying about 250 per cent more for the LAF than their neighbours to the north in Edmonton, where the access fee is a flat rate.
The average Calgarian will pay roughly $260 on local access fees this year, while Edmontonians will pay $80.
Moving away from the RRO for the LAF in Calgary could take up to two years to get through the Alberta Utilities Commission regulatory process, but some city council members hope to speed up that process.
"That is still a long way out, and I don't think that is something Calgarians would stomach well, so we need to work with our colleagues to expedite this process and explore and understand what those implications are," said Ward 11 Coun. Kourtney Penner.
"Then we need to be having those conversations with Calgarians about what it means for them."
Other council members say they would like to keep the LAF on the RRO and use the excess revenue to provide rebates for those struggling to make ends meet.
"Only 20 per cent of our residential customers are on a regulated rate option, and those are the ones who are hurting the most, who potentially could benefit the most from this credit," said Ward 10 Coun. Andre Chabot.
"There's a lot of people that really don't need it, and I'm not sure that a blanket credit is the right method. Maybe we look to go to a means test to provide a credit to those people who are really struggling, which is another option that we have we do that on affordable transit passes. So maybe that's the best solution."
The original plan was for city administration to bring back possible changes to the LAF sometime next year for council approval, but there is a push to speed up that process and have a report ready before the end of 2023.
You can view the city's PowerPoint presentation on the impact of local access fees on affordability here.
CTVNews.ca Top Stories
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Bouchard lifts Edmonton Oilers to 4-3 overtime win over Canucks in Game 2
Evan Bouchard scored 5:38 into overtime and the Edmonton Oilers bounced back for a 4-3 win over the Vancouver Canucks in the second round of the Stanley Cup playoffs on Friday.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.