Regulated rate rise driving access fees high for every Calgarian
CTV
As the regulated rate option (RRO) for electricity hits record highs Albertans are being encouraged to sign contracts to ensure electricity price stability, but Calgarians who have signed contracts will still see their bill go up as the RRO rises.
As the regulated rate option (RRO) for electricity hits record highs, Albertans are being encouraged to sign contracts to ensure electricity price stability, but Calgarians who have signed contracts will still see their bill go up as the RRO rises.
It's the result of rising fees, in particular the local access fee. It is charged to utilities in lieu of property taxes for public land used by the utilities.
Unlike other municipalities, this ties the local access fee to the RRO, which means as the RRO hits record highs, so does the local access fee Calgarians will see on their bills.
“In terms of dollars for an average homeowner, a Calgarian, as I mentioned, will probably pay upwards of about $260 in local access fees this year. An Edmonton homeowner will pay about $80 by comparison, "said Thomas Glenwright, a director with Energy Associates International.
Glenwright said with the unprecedented rise in the RRO, the City of Calgary is filling its coffers with surplus revenue from the linked access fees.
“Right now, they're achieving a significant revenue windfall, our RRO prices are going to hit a historic high, or they have hit a historic high this month, and they hit incredibly high the last couple of years. So that's resulted in tens, or hundreds of millions of dollars in excess revenue compared to what they had budgeted for," said Glenwright.
Based on data from the City of Calgary's 2023-2026 service plan and Enmax's financial statements, Glenwright said the city’s first-quarter estimate was $35 million in revenue from the fee, but it actually realized $91 million over the period.
