Power and gas franchise fee rates will be going up slightly next year in Whitecourt.
Town Council passed a motion this week to increase the power franchise fee from the current 2.42% to 2.6%, and the gas franchise fee from the current 23.26% to 25.68%, both effective for January 1st, 2020.
The increases deviate from the Town’s 5-year plan but will help generate additional revenue equal to a 1% tax rate increase of $137,000 compared to the revenue under the plan. The increases will be used to mitigate the impact on the 2020 service levels and tax rates from the current economy.
It is planned that this increase will only be for 2020 before reverting back to the 5-year plan, and Mayor Maryann Chichak says Council will take another look at the rates in the new year.
The increases will cost the average customer $1.39 per year ($0.11 per month) more on their power bills, and $13.20 per year ($1.10 per month) more on their gas bills.
Whitecourt’s power fee of 2.6% is still substantially lower than the regional average of 9.57%, while their 25.68% gas fee is slightly above the regional average of 22.06%.