Users of utilities in town will continue to be covering the hefty franchise fees the town charges to the Fortis Alberta Electric Distribution System and Atco Gas.

The town charges Fortis a 17 per cent gross distribution fee even though the average charge is eight per cent by Alberta municipalities. The top rate charged in the province is 20 per cent.

Cochrane is much closer to the average franchise fee charged for gas, charging Atco 20 per cent compared to an average rate of 19 per cent. The highest amount charged by a municipality is 35 per cent.

Town Corporate Services executive director Katherine Van Keimpema told council the fees aren't charged by all Alberta municipalities. She also outlined that a one per cent increase in the rates would generate an additional $180,000 from electricity and $78,000 from gas for the town annually.

Van Keimpema says it's viewed as a user fee by the town.

"Rather than gathering more income from property taxes, with using the franchise fee system, you're charging the person who is receiving power and gas utilities, which may not be necessarily the same as the property owner."

The franchise fees generate over $3 million annually for the town.

While the fees are charged to the utility companies, they appear riders on monthly utility bills. The exact amount each month is detailed on utility bills and is among the many extra costs tagged on for use of power and gas.

The town has existing agreements with both of these utility companies but does have the ability to change the franchise fee after providing a minimum of two months' notice to the companies.

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