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Notice for Objections Village of Nobleford Application No

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Notice for Objections Village of Nobleford Application No Calgary Office 640 – 5 Avenue SW Calgary, Alberta Canada T2P 3G4 Tel 403 297-8311 Fax 403 297-7336 NOTICE NOTICE FOR OBJECTIONS VILLAGE OF NOBLEFORD APPLICATION NO. 1467968 ATCO GAS AND PIPELINES APPLICATION NO. 1467975 Take Notice that the Alberta Energy and Utilities Board (the EUB) may continue to process these applications without further notice if no valid objections are received on or before July 26, 2006. Nature of the Applications An application has been filed with the EUB by the Village of Nobleford (the Village) for approval to renew its natural gas distribution franchise agreement (the Agreement) with ATCO Gas and Pipelines Ltd. (ATCO Gas). The Agreement gives ATCO Gas the exclusive right to deliver natural gas to the residents of the Village for 10 years. The Agreement has been based on a standard natural gas franchise agreement commonly used in the province. Some of the noteworthy changes from the current agreement include a change in responsibility for utility relocation costs caused by municipal purposes, provision of extra services, options for purchase of the distribution system by the municipality, and provisions respecting third party use of the distribution system. The Agreement also requires ATCO Gas to pay the Village municipal taxes as well as a franchise fee for use of municipal rights of way. Previously ATCO Gas only paid a franchise fee in lieu of municipal taxes. ATCO Gas has applied to the EUB for approval to revise its delivery rates so that the revised franchise fee and municipal taxes included in the Agreement can be recovered from retailers providing service to customers within the Village of Nobleford. ATCO Gas bills retailers for its delivery charges and these would include charges for the revised franchise fee and the municipal taxes. Retailers bill customers for all charges of ATCO Gas in addition to their energy charges. The franchise fee is required to be billed as a separate charge on gas billings. The franchise fee provided in the proposed agreement would decrease from 5.26 per cent of ATCO Gas revenues from delivery and deemed value of natural gas, to 0 per cent of ATCO Gas revenues from delivery only. The combination of the change in the level of franchise fee and the addition of municipal taxes would result in a decrease of $62.50 for an average customer’s annual gas bill. The Agreement further allows the Village to increase the level of the franchise fee at its own discretion on an annual basis, without any further review by the EUB. However the Agreement does not allow the Village to impose a franchise fee above 35 per cent. Therefore, if the Village implemented the maximum franchise fee at current rates for distribution, yearly gas billings of an average residential customer in the Village would increase by about $108 from the amount paid with the initial fee. Additional Information To obtain additional information or a copy of the applications, contact: The Village of Nobleford P.O. Box 67 Nobleford, Alberta T0L 1S0 Attention: Mr. Kirk Hofman, Chief Administrative Officer Telephone: (403) 824-3555, Fax: (403) 824-3553 - or - ATCO Gas and Pipelines Ltd. 410 Stafford Drive N Lethbridge, Alberta T1H 2A9 Attention: Derek Harding, Manager Lethbridge District Operations Telephone: (403) 380-5401, Fax (403) 380-5428 For information about EUB procedures, contact Kevin Schultz of the Utilities Branch at the number listed below. The application is available on IAR Query through the EUB website at www.eub.ca. IAR Query is available through the “Quick Links’, by choosing ‘IAR’. Search for application number 1467968 and/or 1467975. To File a Submission If you have a valid interest and want to make a submission, intervention or objection please state in writing your reasons for objection to the applications. Send one copy of your objection to the Village at the address above, and a copy to [email protected]. referencing application 1467968 or 1467975. If you do not have access to email you can send your objection to: Kevin Schultz, Utilities Branch Alberta Energy and Utilities Board 10th Floor, 10055 106 Street Edmonton, Alberta T5J 2Y2 Telephone (780) 427-9360, Fax: (780) 427-6970, Email: [email protected] Issued at Calgary, Alberta on July 6, 2006. ALBERTA ENERGY AND UTILITIES BOARD Douglas Larder, Q.C., General Counsel .
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