Edmonton Raises Its Electricity Franchise Fee to 19.4%: What It Means for Your Power Bill
Electricity rates in Edmonton are about to move again. On October 6, Edmonton City Council voted 8–5 to raise the electricity distribution franchise fee from 17.65% to 19.4%, effective January 1, 2027.
Councillor Mike Elliott voted against the hike, citing the financial burden on homes and local businesses:
“This increase means higher costs on electricity bills for Edmonton households. Hospitals, universities & large businesses: They will also face significant increases, and those additional costs can ultimately flow through to the services Edmontonians rely on.” — Coun. Mike Elliott
What is the franchise fee?
The franchise fee is what EPCOR pays the City for the right to use municipal land and infrastructure to deliver power. Franchise fees are paid by energy providers for their use of city infrastructure to deliver electricity. In practice the cost is passed on to customers, and it appears on your bill as the Local Access Fee. It sits in the delivery portion of your charges, not the energy commodity portion, so it applies no matter which electricity retailer you choose.
Why the City made the change?
City administration had floated the maximum allowable rate of 20%, which was estimated to raise $15 million to $20 million for the municipality. Council settled on 19.4%. City staff said the increase would bring Edmonton in line with Spruce Grove, Stony Plain and Calgary, and would bring in an additional $20 million annually. Supporters on council argued it is a better route than making up the revenue through property taxes. Opponents pointed to the rising cost of living and the volatility of Alberta’s energy market.
Why large commercial consumers feel it most
Because the fee is calculated as a percentage of distribution charges, it scales with size. Estimates suggest:
Office towers, large non-profits and entertainment venues: close to $10,000 more per month (over $120,000 a year)
Post-secondary institutions: increases approaching $30,000 per month
Hospitals: thousands of dollars more each month
For organizations with tight operating budgets, an unplanned increase of this size matters. It also shows how much of a power bill is made up of charges beyond the energy price itself.
What it means for households and small businesses
Residential consumers will see a modest but real increase. City administration said the typical residential user would pay a bit more than a dollar each month. Higher-usage households will pay more, and the estimated range is roughly $1 to $10 per month depending on consumption. Small businesses could see monthly increases of up to about $22.
You can’t change the fee, but you can manage the rest of your power bill
The Local Access Fee is set by the City. The other parts of your energy costs are not fixed, and that’s where 8760 can help.
For large commercial customers, 8760 has supported Alberta businesses since 2004 with a three-part approach:
Energy procurement: We use the buying power of more than 30,000 energy sites in a formal, competitive tender process to secure strong commodity pricing.
Energy efficiency: We identify practical, financially sound upgrades that reduce electricity and natural gas use without hurting operations.
Delivery charge reviews: Regulated charges aren’t automatically optimized. In our experience, about one in three sites has room to improve its delivery rate structure.
Learn more about our Large Commercial Energy Program and ask for a free energy bill check-up.
For homes and small businesses, Alberta’s deregulated market lets you move off default rates and lock in a fixed price for one, two, three or five years.
Check when your current term ends and compare your options. 8760 residential rates start at 6.98 ¢/kWh for electricity and $3.28/GJ for natural gas, and small business rates start at 7.68 ¢/kWh and $4.08/GJ. Use our free rate calculator and market comparison tool to estimate your savings.
The bottom line
The franchise fee increase takes effect January 1, 2027, so now is the time to review your contract, your rate class and your delivery charges. Contact 8760 to find out where your energy costs can be reduced.
At 8760, we deliver cost certainty and peace of mind. Start with a free energy bill check-up to explore your savings opportunities or visit https://www.8760.ca/businessenergy to learn more about our Large Commercial Energy Program.
8760: Navigate. Elevate. Optimize.
Sources:
CBC.ca - Edmontonians could face higher power bills after city council votes to raise electricity franchise fee
Stellar Upgrades - Edmonton Power Bills Go Up on January 1, 2027: The Franchise Fee Increase, Explained (and What It Actually Costs You)
Edmonton Journal - Large businesses and post-secondary institutions could see five-digit utility fee hike if Epcor franchise fee increase approved
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