Hythe residents will keep paying the same municipal gas and electric fees for now. The County of Grande Prairie approved keeping the current percentage for the hamlet’s ATCO Electric and Gas franchise fees at Monday’s meeting.
A municipal franchise fee is collected by ATCO for a municipality when it gives the utility company the exclusive right to provide service to its residents and businesses as well as the right to use the municipality’s property for the construction, operation and extension of its system.
Currently, the ATCO electricity franchise fee is 10 per cent of the distribution revenue, and the ATCO gas franchise fee is 12 per cent of the delivery revenue. The fees can be changed annually and the Village had increased the electricity fee percentage three times since 2012, and once for gas.
The revenue collected will be put towards the debt that the County took on when the Village dissolved. Based on average consumption, it’s assumed revenue from electricity distribution will be $797,993 and $279,788 from gas delivery.
The matter is connected to the former Village of Hythe’s dissolution on July 1, 2021. The agreements already in place are set to expire in 2028 and 2030 respectively, but the County could change them if desired.
