The amount the Village of Boyle and the Town of Athabasca will be collecting from ratepayers for Fortis fees is going up as of Jan. 1, 2020.
Municipalities choose yearly if they want to increase the fee or leave it status quo with the cap of 20 per cent imposed by the Alberta Energy Commission. Several municipalities are at that cap including Blackfalds, Morinville, Spruce Grove and Stony Plain.
Boyle and Athabasca are below the cap even with the increase.
“We decided to increase from 6 per cent to 10 per cent this year with the Fortis Franchise Fee,” stated interim Boyle CAO Robert Jorgenson.
The increase will generate $41,206 more revenue for the Village upping it from $60,929 to $101,549.
“Yes, the increase is substantial, but you must understand that it is spread over a larger user population. A lot of these organizations, such as hospitals, schools, provincial and federal buildings do not pay property taxes,” Jorgenson explained. “So, by using franchise fees it will help offset the Village tax rate for residents.”
“According the Fortis’s spreadsheets this will equate to an average increase of power bills of $2.69 per month ($32.28 per year) for resident.”
The last time Boyle council increased the Fortis fee was at their May 2, 2018 meeting.
The increase in the Town of Athabasca will put the fees at 10 per cent, up from seven, adding $1.94 per month, or $23.28 per year.
Rachel Ramey, interim CAO for the Town of Athabasca, said the increase will amount to approximately an additional $84,000 in revenue.
“It’s an annual thing; you have to notify Fortis by Nov. 1,” Ramey said. “We did not increase it last year.”
The town last increased the Fortis fees at their council meeting Nov. 7, 2017.
Ramey added the fees will show up on the Fortis utility bill.
