File photo of power transmission lines carrying electricity to Calgary-area homes are seen in the foreground, with apartments in the background.Calgarians are a step closer to getting some relief on their electricity bills following city council’s decision to explore a different model for local access fees .
At a strategic meeting of council on Monday, councillors agreed to have city administration design a “quantity-only model” for the LAF.Under a quantity-only model, Calgarians would be charged only based on how much electricity they use, similarly to how Edmonton recovers grid costs. Recent years have seen local access fees jump as the RRO jumped. For example, August 2023’s RRO was more than two-and-a-half times higher than the RRO from two years prior.
LAF fees go toward the upkeep of the city’s electricity system, with surpluses going to other capital projects in the city.Carla Male, the city’s chief financial officer, said the large swings in RRO rate has introduced instability and unpredictability in the costs Calgarians and businesses have had to face.“Stability and predictability is paramount, and our existing system that uses the RRO is causing large swings,” Male said.
Council approved the work in a 12-3 vote, with only councillors Dan McLean, Sean Chu and Andre Chabot voting against it.City council orders review of Calgary’s local access fee amidst affordability concerns
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