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ATCO Gas and Pipelines Ltd. and the Town of Provost – Franchise Agreement and Rate Rider A, AUC Disposition 25558-D01-2020

Link to Decision Summarized

Rates – Franchise Agreement

On May 12, 2020, ATCO Gas and Pipelines Ltd. (“ATCO Gas”) applied to the AUC for approval of a natural gas franchise agreement with the Town of Provost.

The proposed franchise agreement is based on the standard natural gas franchise agreement template approved in Decision 20069-D01-2015, has a term of 20 years or less, and will be effective August 1, 2020. Provost has commenced reading of Bylaw No. 01/2020, approving the franchise agreement.

The proposed franchise fee of 22 percent maintains the current franchise fee. The proposed franchise fee will remain as a $9.61 charge in the average monthly charge for an average residential customer.

The AUC considered that the right granted to ATCO Gas by the Town of Provost to construct, operate and maintain the natural gas distribution system is necessary and proper for the public convenience and properly serves the public interest.

Pursuant to Section 45 of the Municipal Government Act and Section 49 of the Gas Utilities Act, the AUC approved the franchise agreement as filed.

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