Calgary to explore alternative to local access fees on electricity | 24CA News
Calgarians are a step nearer to getting some reduction on their electrical energy payments following metropolis council’s determination to discover a unique mannequin for native entry charges (LAF).
At a strategic assembly of council on Monday, councillors agreed to have metropolis administration design a “quantity-only model” for the LAF.
Currently, the LAF levied on all electrical energy payments is tied to the regulated fee choice (RRO), the floating value of electrical energy within the province.
Under a quantity-only mannequin, Calgarians can be charged solely based mostly on how a lot electrical energy they use, equally to how Edmonton recovers grid prices.
Recent years have seen native entry charges bounce because the RRO jumped. For instance, August 2023’s RRO was greater than two-and-a-half instances increased than the RRO from two years prior.
LAF charges go towards the maintenance of town’s electrical energy system, with surpluses going to different capital tasks within the metropolis.
Carla Male, town’s chief monetary officer, mentioned the big swings in RRO fee has launched instability and unpredictability within the prices Calgarians and companies have needed to face.
“Stability and predictability is paramount, and our existing system that uses the RRO is causing large swings,” Male mentioned. “And so we know that businesses and citizens are having trouble with that.”
Ward 12 Coun. Evan Spencer acknowledged the change to LAFs isn’t a “massive affordability play.”
“What this is, is a predictability and stability conversation, which is good for business, good for governance, good for reputation,” Spencer mentioned.
The quantity-only mannequin would require council to set the speed charged, one thing that must be performed yearly.
“Our analysis shows that in moving to a quantity-only model and counsel being able to set that rate provides more certainty and predictability for counsel and for citizens and for businesses,” Male mentioned.
The metropolis’s CFO and her staff will now put together a extra in-depth mannequin proposal for council to think about.
“It is a large amount of work, and we need this initial decision by council to be able to take those next steps,” she mentioned.
Council accepted the work in a 12-3 vote, with solely councillors Dan McLean, Sean Chu and Andre Chabot voting towards it.
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