Franchise Fees

Municipal franchise fees reflect the City’s charge to utility operators for the exclusive right to provide utility services within Spruce Grove. These agreements also provide the utility companies with access to City lands to construct, maintain, and operate their assets. The City of Spruce Grove has entered into Franchise Agreements with FortisAlberta Inc. (Bylaw C-835-12) and ATCO Gas and Pipelines Ltd. (Bylaw C-1064-19) which allow for a municipal franchise fee to be charged to these utilities.  The amounts are remitted to the City by the utility companies after they have billed their customers. The FortisAlberta Inc. agreement authorizes a charge of 20% of the consumption of electricity. The FortisAlberta Municipal Franchise Fee Riders   lists the franchise fees charged by municipalities in Alberta which appear on consumer’s electricity billings.

The ATCO Gas and Pipelines Ltd. Agreement authorizes a charge of 25% of gross revenues from gas. The ATCO Gas and Pipelines - North Rate Schedules   shows franchise fees charged by municipalities in Alberta which appear on consumer’s gas billings.