No complaint on franchise fee hike

McLennan town council’s decision to raise ATCO’s franchise fee has resulted in a little bit more money for council and zero complaints.
Council heard they received no complaints at its April 11 meeting while examining ATCO’s McLennan community report.
The franchise fee is an agreement between ATCO and council which gives ATCO the exclusive right to do business in the town. The former council increased the fee to 3.75 per cent from 2.75 per cent at its Sept. 13, 2021 meeting. Council also agreed to put the extra money in a slush fund for the town’s community groups. Any raise in the franchise fee is passed on to customers on their electric bill.
ATCO’s numbers indicate council will receive $31,460 in 2022 compared to $19,906 in 2021, or an increase of $11,554.
McLennan’s 2022 rate of 3.75 per cent is still far below Falher’s 2021 rate of seven per cent and Girouxville’s 2021 rate of is per cent.
It was first estimated the franchise fee would generate only $6,870.

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