Banff Is Raising Electricity Fees to Put More Power Lines Underground

Banff residents will soon pay more on their electricity bills as the town makes a larger push to move its overhead power lines underground.

Beginning Jan. 1, 2027, Banff's Fortis franchise fee will increase from 8 percent to 12 percent, adding about $5 a month to the average residential electricity bill. The additional money will be set aside specifically to bury overhead electrical lines.

Banff has roughly 11.5 kilometres of overhead power lines, most in residential areas north of the Bow River. The town has been putting money aside to bury them since 2019, but the work is expensive and progress has been slow.

As of the end of 2025, Banff had $381,452 in its overhead-line burial reserve after accumulating roughly $60,000 to $70,000 a year.

Darren Enns, Banff's director of planning and environment, told council one potential project expected to come forward could consume essentially the entire reserve while burying only about six poles.

"So over about six years, we've saved for six poles," Enns said. "That pace isn't really going to make any meaningful change over time."

A relatively simple residential street can cost between $100,000 and $200,000 to underground, according to the town, while a complicated commercial alley can cost more than $1 million.

Why Bury Power Lines?

There are several reasons Banff wants the wires underground, and aesthetics are only one of them.

Overhead power lines are exposed to falling trees, vehicle collisions and severe weather, creating the potential for outages. They can also pose a wildfire risk.

A town report says undergrounding reduces above-ground ignition opportunities. Enns told council that trees falling onto power lines can knock out electricity and potentially create an ignition source.

"The risk of wildfire from an overhead line is greater than that from an underground line," Enns said.

There are tradeoffs. Research into underground electrical systems has found that burying lines can reduce their exposure to weather, vegetation and some wildfire hazards, but underground infrastructure is considerably more expensive to install and can take longer to repair when something goes wrong.

In Banff, there is another benefit: getting utility poles and wires out of the way.

That matters particularly in the town's narrow commercial alleys. Enns pointed to Bear Street's alley, where removing overhead lines made it easier to position an aerial fire truck.

He also identified the Banff Avenue alley behind the Mount Royal Hotel as one the town would particularly like to address.

"That's a key alley that we would love to see burial on," Enns said.

Removing the overhead infrastructure creates additional room for emergency vehicles, deliveries and other activity in constrained spaces.

Why Now?

Banff believes the next several years could provide an unusual opportunity to get more of the work done.

The town currently has what administration describes as a record number of residential development and building permits in the pipeline. When a larger property is redeveloped, the developer can be required to bury the power lines associated with that project.

The town can then use its own money to finish the job.

If a street has six poles, for example, a developer might pay to bury two. Banff could contribute the money to bury the remaining four at the same time rather than leaving part of the street overhead.

The town used that approach when Bison Courtyard was developed in 2005. The project buried utilities along part of the Bear Street alley, while Banff contributed money to bury the remainder.

Another opportunity is coming underground.

ATCO intends to replace older steel natural-gas mains, primarily north of the Bow River. About 2.9 kilometres of those mains run along streets that also have overhead electrical utilities.

That creates the possibility of coordinating the work so gas and electrical infrastructure can be placed underground at the same time rather than digging up the same area twice.

Potential areas include portions of Marten, Buffalo, Otter, Grizzly and Deer streets, several nearby alleys, Big Horn Alley and the Old Banff Cemetery line. These are not approved projects, but locations where the town sees opportunities to coordinate future work.

ATCO's exact timeline remains uncertain.

How Much More Money Will Banff Have?

Before the increase, about $60,000 to $70,000 a year was being accumulated for overhead-line burial.

The town initially contemplated increasing that to roughly $310,000 annually. Council ultimately went slightly further, increasing the overall franchise fee to 12 percent rather than 11 percent.

The town did not provide a final annual revenue estimate for the 12 percent rate during the meeting.

For residents, however, the estimated impact is clearer: about $60 more per year for the average household.

Even after the increase, Banff's 12 percent franchise fee will remain below several nearby Alberta municipalities. Canmore charges 18 percent, Cochrane 17 percent, and Airdrie 20 percent.

There is no expiry date on Banff's higher rate, although town officials indicated it could be revisited after the current wave of redevelopment and utility work slows.