The short version: the local access fee (LAF) is a municipal franchise fee that piggybacks on your electricity bill. Cities and towns charge the distributor for using the public rights-of-way; the distributor passes that cost directly through to customers, calculated as a percentage of energy or delivery charges. It can be a small line item in one city and a meaningful 10 to 15 percent surcharge in another.

The misunderstanding to clear up first

Households often blame their retailer for the LAF because it sits in the energy section of the bill. The retailer collects it; the city sets it. Switching retailers does nothing to the LAF — it is a municipal tax in disguise. Knowing this changes how you think about "saving money on your bill". The LAF is not part of the savings story.

Why municipalities charge it

Distribution wires run on public rights-of-way — over streets, under sidewalks, across public utilities. Municipalities charge for that use through a franchise agreement with the distributor. The agreement was historically a competitive concession (the city granted the distributor a monopoly to use its land); the fee was a way for the city to share in the benefit. Today, distributors are AUC-regulated and the franchise fee is more of a fiscal tool than a competitive concession, but the legal structure is unchanged.

Tool: estimate the LAF on your bill

Plug in your monthly use, energy rate, and your city\'s LAF percentage. The tool shows how much of your bill the LAF accounts for.

LAF this month
$
Share of bill
%
Annualised
$

The non-obvious thing about which households the LAF hits hardest

Because the LAF is usually a percentage of the bill rather than a flat fee, it scales with usage. High-use households in high-LAF cities pay materially more LAF than low-use households in low-LAF cities. A family in a large home in a 12-percent-LAF municipality can pay $300 or more in annual LAF, while a similar family in a low-LAF municipality pays $100 or less for the same lifestyle. That is a structural difference rarely visible in headlines about which city has the cheapest power.

What this means for your household

  • The LAF is not a retailer choice. It will not change when you switch.
  • If you live in a high-LAF city, the LAF is one of the few large surcharges you cannot avoid except by using less.
  • The LAF percentage is set by city or town council. It can change with the municipal budget.
  • Demand-management tools (off-peak EV charging, thermostat schedules) reduce both the energy charge and the LAF — a double benefit.

Frequently asked questions

Yes. "Local access fee" and "municipal franchise fee" are interchangeable terms. The municipality charges the distributor for right-of-way use; the distributor passes it through on the energy line, line-itemed on your bill.
Each municipality picks its own formula. The most common is a percentage applied to the energy and/or delivery charges, but some use a flat per-kWh rate. The percentage varies widely city to city.
No. Every account in a participating municipality pays it. Switching retailers does not change the LAF. The only way to "save" on it is to use less electricity.
Yes, and so do most Alberta municipalities. The exact percentage and formula are set by each city or town council and can change with the annual municipal budget.
Because most LAFs are calculated as a percentage. If your energy use is higher, your LAF rises in proportion. The percentage itself usually changes once a year if at all.