Gas – Municipal Franchise Fee
Application
ATCO Gas and Pipelines Ltd. (“AGP”) applied for approval to establish a natural gas franchise agreement (the “Agreement”) with Red Deer County for the Hamlet of Springbrook. Under the Agreement, AGP will have the exclusive right to provide natural gas distribution service within the municipal service area. AGP will also have exclusive rights to construct, operate and maintain the natural gas distribution system and use portions of roads, rights-of-way, and other lands owned, controlled, or managed by Red Deer County that have been designated for such use. AGP sought approval of a franchise fee rate rider schedule, which reflects the franchise fee of 19.50 percent as set out in the Agreement.
Decision
The AUC approved the Agreement as filed.
The proposed franchise fee of 19.50 percent is below the 35 percent fee cap previously approved by the AUC, and the AUC therefore found that the proposed franchise fee was reasonable. The AUC approved AGP’s Rate Rider A amount of 19.50 percent for customers in the Hamlet of Springbrook.
Applicable Legislation
Municipal Government Act, RSA 2000, c M-26, s. 45.
Gas Utilities Act, RSA 2000, c-G5 ss. 35, 36 and 49.
Rule 029: Applications for Municipal Franchise Agreements and Associated Franchise Fee Rate Riders
