(Cochrane, AB) – Cochrane Town Council has approved Administration's recommendation to move forward with the public notification and regulatory approval process for proposed increases to natural gas and electricity franchise fees. The proposed adjustments are part of the Town's ongoing efforts to diversify municipal revenue, reduce reliance on property taxation and support long-term financial sustainability.
Together, the proposed adjustments would generate approximately $2.1 million in additional annual revenue to support municipal services and future infrastructure needs. This revenue is already incorporated into the draft 2027 Budget and reflected in the proposed property tax increase currently before Council.
The proposed changes include:
- Natural gas (ATCO): An increase from 20% to 35%, generating approximately $1.37 million annually. The average residential customer would pay an additional $7.16 per month.
- Electricity (FortisAlberta): An increase from 17% to 20%, generating approximately $697,000 annually. The average residential customer would pay an additional $2.40 per month.
For the average residential customer, the combined impact would be approximately $9.56 per month, or $115 annually.
Franchise fees are collected through utility bills and paid to municipalities by utility providers for the use of municipal lands and rights-of-way. Unlike property taxes, franchise fees are paid by all utility customers, including tax-exempt properties such as schools and places of worship. This provides a more equitable approach to funding municipal services by distributing costs across a broader base of properties that benefit from municipal infrastructure and services.
"We recognize the financial pressures residents are facing, and we need to carefully consider decisions that affect household costs," said Mayor Morgan Nagel. "At the same time, we have a responsibility to find sustainable ways to fund the services and infrastructure our growing community needs."
Cochrane's current franchise fee rates are below those of several comparable municipalities, including Airdrie, Okotoks and Strathmore, which have adopted the maximum permitted rates of 35% for natural gas and 20% for electricity.
"These adjustments are part of a broader effort to diversify our revenue and ensure municipal costs are shared more equitably across the community," said Robbie Lowden, Executive Director, Finance & Corporate Services. "Franchise fees allow us to collect revenue from properties that don't contribute through municipal property taxes, while reducing our reliance on residential and commercial property taxation. This revenue is already reflected in our draft 2027 Budget."
Council's direction does not constitute approval of the proposed increases. It allows the Town to begin the required public notification process while preserving the option of implementing new rates on January 1, 2027.
Formal public notices will outline the proposed changes, their financial impact and how residents and businesses can provide feedback through the regulatory process.
Residents can also review the draft 2027 Budget and provide feedback for Council's consideration at letstalkcochrane.ca/budget until November 6, 2026.
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Media inquiries:
Town of Cochrane
Communications & Engagement
communications@cochrane.ca