Franchise Fee – Continuation
In this decision, the AUC approved the application from ATCO Gas and Pipelines (“AGP”) for approval of a natural gas franchise agreement with the Town of Irricana (“Irricana”). The franchise agreement will be in effect for ten years as of April 1, 2022.
Proposed Franchise Agreement Renewal and Franchise Fee
AGP filed the application according to Rule 029: Applications for Municipal Franchise Agreements and Associated Franchise Fee Rate Riders. The proposed franchise agreement is based on the standard natural gas franchise fee agreement template approved in Decision 20069-D01-2015 and is a renewal of the current franchise agreement between Irricana and AGP.
AGP’s proposed franchise fee of 11.18 per cent does not exceed the AUC’s rate cap of 35 per cent. As a result of the fee, residential customers in Irricana will continue to pay an average monthly charge of $6.59. Prior to any change in the level of the franchise fee pursuant to the franchise agreement, customers shall be notified as outlined in s. 6 of Rule 029.
Pursuant to s. 45 of the Municipal Government Act and s. 49 of the Gas Utilities Act, the franchise agreement was approved as filed.
