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
BREAKING Foreign meddling 'did not affect' overall federal election results: inquiry report
Foreign interference by China did not affect the overall results of the 2019 and 2021 general elections won by Justin Trudeau's Liberals, a federal commission of inquiry has found.
BREAKING Police make arrests in killing of B.C. Sikh activist, source confirms
Police have made arrests in the killing of B.C. Sikh activist Hardeep Singh Nijjar, a senior government source has confirmed to CTV News.
WATCH LIVE Funeral today for broadcasting legend and voice of 'Hockey Night in Canada' Bob Cole
A funeral is being held today for hockey broadcasting legend Bob Cole in his hometown of St. John's, N.L.
Magnitude 4.8 earthquake recorded west of Vancouver Island
A 4.8-magnitude earthquake was reported west of Vancouver Island Thursday evening.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
How falling for a stranger she met on a beach led this woman to ditch the U.S. for the French Riviera
Niki Benjamin, from the U.S., had travelled to a paradise island to do some soul searching, and her life ended up going in a very different direction when her dog ran up to a stranger.
Biscuits with possible plastic pieces, metal found in ground pork: Here are the recalls for this week
Here are the latest recalls Canadians should watch out for, according to Health Canada and the Canadian Food Inspection Agency.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Supreme Court orders new trial for B.C. francophone who was not given French option
The Supreme Court is ordering a new trial for a francophone man in British Columbia who says he was not informed of his right to have a trial in the official language of his choice.