BILD Calgary Region Industry Update 2026 – 39

Dear Members,

Please find attached an important bulletin from ENMAX outlining changes to the financial framework of the Developer Construct Model (“DCM”), made effective March 1, 2026. This impacts all Underground Residential Distribution (“URD”) projects. All members impacted by URD projects are strongly encouraged to review and understand these changes and potential financial impacts to our industry.

BILD’s summary of the changes:

  1. An initial 1st deposit is required prior to design work commencing;
  2. An increase to the 2nd deposit to 50% of the total estimated gross project cost to proceed with URD construction;
    • The bold highlights two materials changes from prior structure. Under the old financial framework, Developers were provided an option to pay 25% of the net project costs after ENMAX’s required Minimum Investment Level (“MIL”) were subtracted from the gross project costs.
    • The combined effect of these changes will significantly increase the total payment amounts to ENMAX to advance URD projects.
      • Note the memo states ENMAX is considering the option for lower deposit payment threshold but on case-by-case credit reviews.
  3. ENMAX will now issue its required MIL investment to Developers as a credit once the URD project is complete and energized. The previous model saw ENMAX’s MIL amount credited against the total project cost upfront, meaning Developers did not have to pay for the MIL upfront. This will negatively impact cash flow timing for all URD projects.

The combined effect of these changes on a URD project varies widely depending on the size and scope. Developers are encouraged to review and quantify this cost impact as more data becomes available under the new system to help BILD better engage and negotiate with ENMAX going forward.

Based on feedback received from members, BILD believes the combined effect of these changes transfers a greater share of project financing, cash flow, and carrying cost obligations to private industry. While these changes do not increase the net URD project costs, members have identified significant impacts related to financing requirements, carrying costs, and the timing of project cash flows.

BILD has engaged extensively with ENMAX on this issue and advocated that the financial impacts to the development industry warranted further consideration as part of the decision-making process. While ENMAX has elected to proceed with these changes, BILD will continue to work with ENMAX, the Alberta Utilities Commission, and other regional utility providers to advocate for a transparent, equitable, and efficient framework that supports investment and timely project delivery for industry.

Should you have any questions or comments, please contact Mohamad Mohamad at m.mohamad@bildcr.com.

ENMAX Bulletin HERE

Thank you,

BILD Calgary Region