The Town of Cochrane is moving forward with the renewal of its Natural Gas Distribution Franchise Agreement with ATCO, ensuring uninterrupted natural gas service to residents and businesses beyond 2025.
Bylaw 16/2025, which outlines a proposed 10-year renewal, was presented during the July 7 Committee of the Whole meeting. First Reading of the bylaw is scheduled for July 14, 2025, during the Regular Council Meeting.
The current agreement is set to expire on December 31, 2025. The new agreement is based on a standardized template approved by Alberta Municipalities and the Alberta Utilities Commission (AUC) and retains all existing terms and conditions.
A key clause continues to provide Cochrane the right—subject to AUC approval—to acquire ATCO’s local distribution system at the end of the term or upon termination, as per provisions in the Municipal Government Act.
The renewal follows a regulated process:
- Municipal review of the agreement’s terms and obligations
- First Reading by Council (July 14)
- Public notice issued at least 45 days before submission to AUC
- 14-day public feedback period
- Final submission to AUC
- Second and Third Readings by Council (pending AUC approval)
If approved, the new agreement will authorize ATCO to continue operating its distribution network within Cochrane’s utility rights-of-way, with franchise fees paid to the Town forming part of general revenue.
The franchise fee, currently set at 20%, remains unchanged under this renewal. However, the Town reviews the rate each fall and could adjust it in the future.
“The maximum that we can charge is 35 per cent,” explained Stacey Loe, Executive Director of Corporate Services. “We are probably on the lower side compared to the rest of the communities around us at present, but again, it is something that we evaluate in the fall.”
This fee structure helps support the Town’s financial strategy while maintaining fairness to ratepayers.
Renewing the franchise agreement aligns with Cochrane’s strategic goals of financial and environmental stewardship, ensuring reliable access to essential utilities.
Public engagement will play a central role in the renewal process. Residents will have the opportunity to share feedback through multiple channels during the 14-day comment period. All submissions will be compiled and included in the Town’s final application to the AUC.
Once adopted, Bylaw 16/2025 will officially replace Bylaw 17/2015.
