Calgary natural gas franchise fee to rise to $5.67 per gigajoule in 2027

Calgary's natural gas franchise fee will rise to $5.67 per gigajoule on Jan. 1, 2027, up from $3.15, under an amendment filed with the Alberta Utilities Commission. The change is meant to hit the $98.2 million in franchise fee revenue council directed administration to collect in 2027, up from a $71.6 million target for 2026.

A notice of application was filed with the AUC on Aug. 7, 2026, for an amendment to the natural gas franchise fee agreement between The City of Calgary and ATCO Gas and Pipelines Ltd. A public notice period runs from Aug. 7 to 25, 2026, to gather feedback from Calgarians, which will be included as part of the application to the AUC.

For the average residential consumer, the monthly franchise fee is estimated at about $10.90 per month in 2027, an increase of about $2.45 per month. Franchise fees make up a small percentage of utility bills.

The agreement grants ATCO Gas the right to provide natural gas distribution service in Calgary. It authorizes ATCO Gas to collect a franchise fee from customers in Calgary and remit the fees to The City in lieu of property tax.

The application also extends the use of the existing franchise fee methodology, which uses a fixed reference price, for an additional year. That extension was made at the request of ATCO Gas.

Franchise fees are an important factor in supporting The City's operating budget and help fund the services Calgarians rely on, keeping property taxes low. In May 2026, council directed administration to collect $98.2 million in revenue from the natural gas franchise fee in 2027.

The next step for ATCO Gas, on behalf of The City, is to apply to the AUC for approval of the new franchise fee agreement, including the franchise fee rate, by Sept. 21, 2026. The AUC has not yet approved the amendment.

For more information on franchise fees and to provide feedback on the changes, visit calgary.ca/FranchiseFeeUpdate.